Mozambique’s Tuna Bond Scandal: What Every Accountant Should Know

Former Mozambican Finance Minister Manuel Chang was recently convicted in a U.S. court for his role in the notorious “tuna bond” scandal. This case is a powerful reminder of the importance of strong financial governance and ethical conduct in the accounting profession.

Between 2013 and 2016, Mozambique borrowed $2 billion from international banks to fund maritime projects. Instead of improving the country's infrastructure, the money was siphoned off through bribes and kickbacks. As a result, Mozambique was left with $2 billion in hidden debt, plunging the country into a severe financial crisis that pushed nearly 2 million people into poverty.

Chang, who served as Finance Minister from 2005 to 2015, was found guilty of accepting $7 million in bribes to guarantee these loans. His conviction highlights the severe consequences of financial misconduct, especially when it involves high-ranking government officials.

The involvement of major banks, including Credit Suisse, which was fined $475 million for its part in the scandal, further demonstrates the need for accountants to maintain high ethical standards. Accountants must ensure transparency and accountability in all financial transactions to protect public trust and economic stability.

For accountants, this case serves as a stark reminder that integrity and ethical conduct are non-negotiable in the accounting profession. It shows how the misuse of financial instruments like bonds can have disastrous effects, not just for a single country, but for the global financial system. As key players in maintaining financial integrity, accountants have a vital role in preventing such scandals and ensuring that financial systems function fairly and responsibly.