Chang's Goose Cooked As South Africa Orders U.S. Extradition

Mozambique's former finance minister Manuel Chang, jailed in South Africa since 2018, will be extradited to the U.S., the Gauteng High Court in Johannesburg has ruled.

The High Court order overturns an earlier directive by Justice Minister Ronald Lamola that Chang be extradited to Mozambique, where he is also wanted on charges related to a fraudulent scheme he authorised between 2013 and 2014.

Asked if Lamola intended to appeal against the judgement, his spokesperson Chrispin Phiri said the minister was considering his options.

Mozambique's "hidden debt" scandal is one of the biggest corruption scandals on the African continent and involves some of the highest-ranking government officials. This case, part of which is currently at the centre of a resounding trial in Maputo, is particularly complex.

The secret loans to the government have come at heavy price for Mozambicans, according to the World Bank, where half of the population live below the poverty line.

Three state-owned Mozambican companies were created to exploit the county's marine resources while, Proindicus was to perform coastal surveillance. Ematun was to engage in tuna fishing and MAM was to build and maintain shipyards.

Debt problems began in 2013, when the Abu Dhabi-based shipbuilding and offshore construction company, Privinvest, obtained a U.S.$366 million contract with Proindicus, financed by IMF loans.The loans for this and other marine projects were requested by Mozambique's State Information and Security Service.

As finance minister at the time, Chang confirmed to Swiss bankers that proceeds from a state loan should be paid to a commercial broker instead of to the Mozambique Central Bank. He is said to have guaranteed loans that were illegal under Mozambique law, and kept these loans secret even from other cabinet members. In 2016 a default on Eurobonds issued by the Mozambican government to hide these and other unpaid loans, brought these actions to public attention.