Unlocking SA corruption conundrum: Mozambique scandal has clues – FT

EDINBURGH — Mozambique is in the grip of a scandal that has erupted on the world's front pages: Former finance minister Manuel Chang has been accused of approving a scheme for government officials to siphon off at least $200m of international borrowings by front companies, as the FT reports. But the problem goes much wider and deeper than Chang and his Credit Suisse bankers. Many powerful people have been tainted by the loans and bribery scandal, including the former president who is pulling the strings of the incumbent. Investors are watching closely to see how Mozambique works to fix its tarnished reputation, which will inevitably require hanging former friends out to dry – a problem that also vexes South Africa's President Cyril Ramaphosa. – Jackie Cameron

By Thulasizwe Sithole

Mozambique's ruling party has closed ranks since US officials indicted the southern African nation's former finance minister and ex-Credit Suisse bankers over a $2bn hidden loans and bribery scandal, reports the Financial Times (FT).

Under President Filipe Nyusi, the Frelimo party has been largely silent since Manuel Chang was detained and sought for US extradition over one of Africa's biggest corruption cases, it says.

"An indictment this month accused Mr Chang, a sitting Frelimo MP, of approving a scheme for government officials to siphon at least $200m from a series of international borrowings by front companies, including a tuna fishing company, which took advantage of investor enthusiasm for vast offshore gas finds."

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