- Chang's conviction does not end criminal cases in the US arising from Mozambique’s two billion dollar debt scandal
- US prosecutors have listed more Mozambique senior government officials as co-conspirators in the debt scandal but there is some doubt whether they will be prosecuted as the illegal conduct occurred so long ago
The conviction of Mozambique's former Finance Minister, Manuel Chang, by a jury in the Eastern District of New York, on charges of conspiracy to commit wire fraud and money laundering does not end the criminal case initiated by the US Department of Justice.
Chang was caught because the DoJ had a list of those involved in the scandal, for whom arrest warrants could be issued. Chang seemed unaware that such a list existed, let alone that his name was on it, until 29 December 2018, when he was arrested at Johannesburg airport, on the basis of an international arrest warrant issued by the Americans.
Also on that list were other key pieces at the Mozambican end of the scandal, including Teofilo Nhsngumele and António Carlos do Rosário, who was head of economic intelligence for the Mozambican security service (SISE) when the illicit loans were contracted, and chairperson of the three fraudulent companies that were set up – Proindicus, Ematum (Mozambique Tuna Company) and MAM (Mozambique Asset Management). Nhangumele and Rosaáio are serving prison sentences following the 2021-2022 hidden debts trial in Maputo. So the American prosecutors may not bother chasing them.
Now the question that remains unanswered is whether there will be more Mozambican government officials in the sights of US criminal justice. Most likely, there won't be an answer to this question until those being investigated are arrested, as was the case with Chang.
But the list of conspirators has grown and the prosecutors announced the new list during the Chang trial. Some of the names added are those of people found guilty at the Maputo trial in 2022.
They include Gregorio Leao, who was the general director of SISE. “Leao was Antonio do Rosario's boss and was also involved in approving the projects. Privinvest's records confirm that Gregorio Leao, was going to receive 13 million dollars in connection with these projects”, prosecutor Genny Ngai said during the closing arguments in Chang's trial.
Then there is Armando Ndambi Guebuza, oldest son of former President Armando Guebuza. The prosecution said he was key in granting the Privinvest fraudsters access to other Mozambican officials, and that Privinvest fixer Jean Boustani paid Guebuza 50 million dollars. During the Maputo trial, it was said that Guebuza Junior kept 33 million dollars, and the rest was divided between Nhangumele and another accomplice, Bruno Langa.
Ndambi Guebuza is serving a 12-year sentence in Mozambique for his involvement in the scandal but will be eligible for parole in February 2025, after completing half of his sentence, since he was arrested in February 2019.
The US prosecutors might come after Leao and Guebuza Junior or they might turn their fire against those prominent figures who have never been tried. One of those is Isaltina Lucas, known to Privinvest by the nickname “three kisses”.
“Isaltina Lucas was heavily involved in approving these projects and overseeing these loans”, prosecutor Genny Ngai told the jurors on August 5th. “And you saw bank records showing that Privinvest paid her $2 million for the EMATUM loan”.
Isaltina Lucas was the National Treasury Director when Chang signed the guarantees to make the debts viable. She was effectively number two in the Finance Ministry.
The biggest catch of all, however, would be Filipe Nyusi, currently the president of Mozambique, and defence minister at the time Chang signed the loan guarantees. “Privinvest’s records show that Nyusi was supposed to get two million dollars”, prosecutor Ngai told the jury. “These are the key Mozambicans that Privinvest paid to get the loans approved”.
Currently, as head of state, Nyusi enjoys sovereign immunity. But that will fall away when Nyusi leaves office in February 2025. Privinvest wants to sue him in the English courts as part of the civil case emerging from the debts.
But an American arrest warrant would be much more serious than Privinvest bluster.
The claim that Nyusi took a bribe from Privinvest was first made in 2019, and Nyusi has never commented on the allegation, which seems to rest solely on Privinvest documents.
The American prosecutors may intend to bring Nyusi to court. Or they may intend to keep him guessing. Fear of an international arrest warrant could restrict Nyusi’s future movements. It might not be wise for him to fly to any country which has an extradition treaty with the United States.
But it is been a decade since the illicit loan guarantees were signed, and the statute of limitations might prevent further action in the case.
“I doubt any additional individuals will be prosecuted because the illegal conduct occurred so long ago”, Richard Messick, executive editor at Global Anticorruption Blog and US Legal Anticorruption Advisor told MOZ TIMES. “The statute of limitations makes it very difficult if not impossible to bring new charges”, he added.
Nonetheless, the US Principal Deputy Assistant Attorney General Nicole Argentieri, who is head of the Justice Department’s Criminal Division, insisted that “Chang’s conviction demonstrates that the Criminal Division is committed to combatting foreign corruption in violation of U.S. law, no matter where these schemes occur or whom they involve”. (BN/PF)
To contact the editor of this story, e-mail pfauvet@moztimes.com
