Mozambique court starts reading verdict in $2bn corruption case

Maputo  — A court in Mozambique on Wednesday started delivering its judgment in a case involving 19 people accused of various crimes for their alleged roles in the disappearance of hundreds of millions of dollars in government-backed loans.

The 19, who include former state security officials and the son of a former president, faced charges ranging from money laundering to bribery and blackmail related to a $2bn “hidden debt” scandal that crashed the nation’s economy.

All the accused, who were present in court on Wednesday, have denied any wrongdoing.

Judge Efigenio Baptista of the Maputo City Court said reading the 1,388 page judgment was likely to take five days.

“We will be reading the ruling in five days.... We will do our best to make (it) in four days,” he said.

All the accused, who were present in court on Wednesday, have denied  wrongdoing.

The scandal arose after state-owned companies illicitly borrowed $2bn in 2013 and 2014 from international banks to buy a tuna-fishing fleet and surveillance vessels but failed to disclose to parliament or the International Monetary Fund (IMF).  

In 2016, Mozambique unveiled the hefty state-backed borrowing. The scandal prompted the IMF and other donors to cut off support, triggering a currency collapse and debt default.

An independent audit found $500m of the loans had been diverted, and the money remains unaccounted for.

Former finance minister Manuel Chang, who signed off the loans, has been held in SA since 2018, pending extradition to the US for allegedly using the US financial system in the fraudulent scheme.

Also in the dock is former President Armando Guebuza’s eldest son, Ndambi.  With Staff Writer

Reuters