“Guebuza Son Found Guilty of Embezzlement and Money Laundering, Triggering Mozambique Economic Crisis”

Guebuza, son of former president armando guebuza, was among 11 people found guilty of embezzlement and money laundering by judge efigenio baptista, who said the consequences of the crime “will last generations”. kickbacks were given to some senior politicians, and ndambi guebuza financed his taste for luxury through the crimes. gregorio leao, head of the security and intelligence service (sise) under mr guebuza, and antonio do rosario were given prison sentences.

Scandal occurred in mozambique, where the frelimo party has been in charge since independence in 1975. in 2016, three newly established companies took on $2.2bn (â£1.5bn) of debt, much of it without the knowledge or approval of the country’s parliament. the mozambican government stood as guarantor of the loans, and money was allegedly used to buy a large tuna factory and a maritime security fleet, as well as to finance other deals involving companies in which the state is a leading shareholder.

Embezzlement and money laundering was allegedly orchestrated by former finance minister manuel chang, who has been detained in south africa since december 2018, in response to an arrest warrant issued by authorities in the united states. auditors reportedly discovered $500m of the money was missing, and uk authorities fined the investment bank $178m over the tuna corruption scandal. president guebuza left office in 2015 after a decade in power, and the scandal has had a devastating effect on the country’s economy.


By Evey Lovelace

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