Mozambique ex-minister’s fraud arrest valid, SA court says
A judge ruled in favour of the arrest of former Mozambique finance minister Manuel Chang, who was detained at OR Tambo International Airport in Johannesburg over alleged secret loans to Mozambican state companies totalling $2bn (R27.7bn).
Chang’s lawyers argued that his detention by South Africa on a US extradition request was illegal. But judge Sagra Subroyen dismissed the application at the Kempton Park Magistrate’s Court on Wednesday, saying “this court agrees with the state to consider that the arrest warrant is valid”.
Chang, who was Mozambique’s finance minister between 2005 and 2015, is accused by US authorities of conspiracy to commit wire fraud, securities fraud and money laundering.
Between 2013 and 2014, Mozambique state-owned security companies borrowed about $2bn from foreign lenders, but the government only disclosed most of the debt to the International Monetary Fund in 2016.
The hidden debt plunged Mozambique into its worst financial crisis since independence in 1975.
After Chang’s arrest on December 29, three former employees of Credit Suisse bank were also arrested in London for possible extradition.
US prosecutors allege that Chang received $12m (R166m) to agree to signing the loan agreements to supposedly finance two marine projects.
About $200m (R2.7bn) was spent on bribes and kickbacks, according to the US indictment.