Mozambique ex-finance minister denied bail in New York over $2 billion 'tuna bond' scandal

A U.S. national justice ruled that Mozambique's erstwhile concern minister, Manuel Chang, indispensable stay down bars portion awaiting proceedings for fraud successful the notorious "tuna bond" ungraded which helped bankrupt the African federation and pb Credit Suisse to wage astir fractional a cardinal dollars successful transgression and civilian penalties.

Chang, who looked frail walking into tribunal Thursday day successful Brooklyn, hoped to beryllium retired connected bail aft being imprisoned for astir 5 years successful South Africa portion awaiting extradition.

Judge Nicholas Garaufis denied the defendant's petition for bail, deeming Chang a formation risk. "He could inactive contiguous himself to the Mozambique Mission to the UN connected 55th Street successful Manhattan and they could take to harbor him and instrumentality him to Mozambique if they chose, right?" the justice asked Chang's lawyer, Adam Ford.

Ford answered "yes," but projected Chang deterioration a "GPS ankle bracelet" and hold to stay successful Brooklyn, frankincense preventing him from entering the Mozambique Mission successful Manhattan. In addition, his lawsuit would station a $1 cardinal idiosyncratic recognizance bond, secured by $100,000 cash, and surrender his passport.

Prosecutor Hiral Mehta argued Chang was a formation hazard due to the fact that helium has nary ties to the United States, faces arsenic galore arsenic 55 years successful situation if convicted, and is financially good disconnected aft allegedly receiving $5 cardinal successful bribes. Chang's lawyers disputed that, saying that though Chang does person $2 cardinal successful Mozambique, those funds are frozen. "He has nary entree to that money," Ford told the judge. Garaufis remained unconvinced and ruled "the exertion for bail is denied."

Chang is 1 of 8 radical charged successful an alleged conspiracy to loot hundreds of millions of dollars from $2 cardinal worthy of loans arranged for dubious maritime projects, including a fleet of tuna sportfishing boats.

Prosecutors accidental Chang received 3 payments totaling $5 cardinal successful speech for providing a authorities warrant from Mozambique connected the loans, arranged by Credit Suisse. When the loans defaulted, it led to the country's sovereign indebtedness collapse, devastating the Mozambique economy.  

Chang pleaded not blameworthy to 3 charges of conspiracy related to ligament fraud, securities fraud, and wealth laundering. Hinting astatine his aboriginal defense, Chang's lawyer stated that though his client's signature is connected the indebtedness documents, it doesn't bespeak helium knew astir the fraud.

"He was required to motion a papers due to the fact that that was his relation successful the government," said Ford.

Three Credit Suisse bankers antecedently pleaded blameworthy successful the case.  A tuna vessel enforcement was acquitted successful 2019. The 3 remaining accused are not successful custody.

Chang utilized a Portuguese interpreter passim the arraignment. When asked by the justice if helium spoke English, Chang responded successful Portuguese "I don't speak, but I understand." 

Judge Garaufis responded "I'm asking due to the fact that I recognize you person a master's grade from the University of London." Chang's lawyer stated that fixed the value of the proceedings, it would beryllium adjuvant for his lawsuit to person an interpreter. The justice agreed to the request.