Former Mozambican Finance Minister Manuel Chang was convicted on Thursday in a high-profile financial conspiracy case linked to his country’s infamous “tuna bond” scandal, which led to a devastating economic crisis in Mozambique and became the focus of a U.S. federal investigation.

A federal jury in New York handed down the guilty verdict after prosecutors detailed how Chang accepted bribes to secure loans for government-controlled companies involved in tuna fishing and other maritime projects. The loans, which were secretly guaranteed by the Mozambican government, were misused, siphoned off through kickbacks and bribes, and led to the country accruing $2 billion in “hidden debt.” This unreported debt eventually triggered a financial crisis that severely impacted Mozambique’s economy.

In a statement following the verdict, U.S. Attorney Breon Peace, based in Brooklyn, underscored the significance of the ruling: “Today’s verdict is an inspiring victory for justice and the people of Mozambique who were betrayed by the defendant, a corrupt, high-ranking government official whose greed and self-interest sold out one of the poorest countries in the world.”

Efforts to obtain comments from Chang’s attorneys and Mozambique’s embassy in Washington were unsuccessful. Chang, who served as Mozambique’s finance minister from 2005 to 2015, was the nation’s top financial official during the period when the controversial loans were secured.

Chang had pleaded not guilty to the U.S. conspiracy charges, maintaining that he was acting in the best interest of his government when he signed off on the deals. His defense argued that Mozambique had pledged to repay the loans and insisted there was no evidence of a financial quid-pro-quo.

While a sentencing date for Chang, 48, has not yet been set, the charges he faces could result in a lengthy prison term. Sentencing guidelines suggest the possibility of up to life in prison, though the exact sentence will depend on several factors, including Chang’s history and the specifics of the case.

The scandal dates back to 2013, when Mozambique’s government-controlled companies borrowed $2 billion from major overseas banks, ostensibly to fund the development of tuna fishing infrastructure and other maritime initiatives. Chang’s guarantees on these loans were crucial in securing the funds, but the majority of the money was diverted through fraudulent means, leaving Mozambique burdened with a massive and undisclosed debt that it could not repay.

The fallout from the tuna bond scandal was catastrophic for Mozambique, leading to widespread economic hardship, a collapse in international investor confidence, and significant political repercussions.

Associated Press