The United States says it is “dismayed” by South Africa’s decision to extradite Mozambique’s former finance minister to Maputo.

Earlier this week, the South African Ministry of Justice and Correctional Services announced the decision to hand Manuel Chang over to Mozambican officials.

Chang is a key figure in the largest corruption trial in Mozambique’s history. As finance minister at the time, Chang is accused of signing off on guarantees that led to the so-called hidden debt scandal, partly authorising loans of more than $2 billion (more than R30.5 billion) between 2013 and 2014.

“Mr. Chang, the former finance minister of Mozambique, is charged in the United States with defrauding American citizens out of millions of dollars and causing significant harm to Mozambique and its people,” said David S. Feldmann, spokesman for the US Mission to South Africa.

The 2019 indictment from the US Department of Justice described how Chang and others allegedly arranged for loans to three companies under the guise of maritime projects, but ultimately diverted the money to corrupt businessmen and Mozambican officials. The loans were guaranteed by the Mozambican government and sold as misrepresented bonds to investors in the US and around the world.

“We believe justice would best be served through Mr. Chang’s extradition to the United States,” added Feldman.

The other defendants in the matter include three Credit Suisse bankers who have since pleaded guilty, accepting a plea bargain in the US. An executive of Privinvest, an Abu Dhabi-based shipping company at the centre of the multinational financial scheme, was acquitted.

The US indictment also listed as defendants Antonio do Rosario, a former security agency official in Mozambique, and Teofilo Nhangumele, an advisor to former president Armando Guebuza who headed up the companies used in the scheme. Both have been arrested in Mozambique and appeared in the trial that began Monday.

Once he is extradited, Chang will join 19 other accused. It’s not clear when Chang will be sent to Maputo.

“The matter is now before the courts and all the relevant issues will be appropriately ventilated in the proceedings,” said Chrispin Phiri, spokesperson for the South African justice ministry.

Justice and Correctional Services Minister Ronald Lamola previously delayed extraditing the former minister to Mozambique over concerns that he enjoyed legal immunity as a former member of Parliament. Now stripped of this immunity, Chang faces charges of abuse of power, fraud, embezzlement, money laundering and corruption.

He was arrested at OR Tambo International Airport in Johannesburg on 27 December 2018 on his way to Dubai and has been in custody ever since due to legal and political wrangling.

TodayNG