This archive report was first published on 1 August 2019.
August 1, 2019, marked a significant development in the extradition case of Manuel Chang, Mozambique's former finance minister. According to a letter from a law firm seen by Reuters, the Mozambican government has instructed its lawyers to oppose applications seeking to have Chang extradited to the United States.
Chang has been in custody in South Africa since his arrest in December 2018 at the request of the United States for his alleged involvement in $2 billion of borrowing that U.S. authorities say was fraudulent. He denies any wrongdoing.
Former South African justice minister Michael Masutha had decided to extradite Chang to Mozambique, but his successor, Ronald Lamola, and a Mozambican civil society organization have applied to the courts to have this decision set aside.
Chang faces charges in the United States, including money laundering and conspiracy to commit fraud, related to loans obtained from Credit Suisse and Russia's VTB bank that were guaranteed by the Mozambican government during his tenure as finance minister from 2005 to 2015.
The disclosure of these loans in 2016 prompted foreign donors, including the International Monetary Fund, to cut off support for Mozambique, triggering a currency collapse and debt default.
Analysts say that if Chang is sent to face trial in the United States, he could reveal new details about the debt scandal, which could have implications for Mozambique's ruling party ahead of presidential, parliamentary, and provincial elections in October.
