Manuel Chang

Manuel Chang, born on August 22, 1955, in Gaza Province, Mozambique, served as the country’s Minister of Economy and Finance from 2005 to 2015 under President Armando Guebuza. During his tenure, he was implicated in a significant financial scandal involving over $2 billion in fraudulent loans, commonly referred to as the “Tuna Bonds” scandal.

Background of the Scandal

Between 2013 and 2015, three state-owned Mozambican companies—Proindicus S.A., Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM)—secured loans totaling more than $2 billion. These loans were purportedly intended for maritime projects, including coastal surveillance, tuna fishing, and shipyard development. Chang, as Finance Minister, endorsed government guarantees for these loans. However, a substantial portion of the funds was misappropriated through bribes and kickbacks, with Chang personally receiving $7 million. The loans were later sold to investors worldwide, including in the United States, under false pretenses regarding their intended use. Ultimately, the companies defaulted, leading to significant financial losses for investors and triggering a debt crisis in Mozambique. 

Legal Proceedings

In December 2018, Chang was arrested in South Africa at the request of the United States. Following extradition proceedings, he was extradited to the U.S. in July 2023. In August 2024, a federal jury convicted him of conspiracy to commit wire fraud and conspiracy to commit money laundering. Subsequently, in January 2025, Chang was sentenced to 102 months (8.5 years) in prison and ordered to forfeit $7 million. The restitution amount is to be determined at a later date. 

Implications

This case underscores the vulnerabilities in international financial systems and the critical importance of transparency and accountability in governmental financial dealings. The scandal not only defrauded investors but also had profound economic repercussions for Mozambique, exacerbating its debt burden and undermining public trust in governmental institutions.

Vikas Sagar

Vikas Sagar, is a British national currently residing in England. He holds a Bachelor of Business Administration from the University of Michigan and an MBA from The Wharton School. Sagar began his career at McKinsey & Company, where he rose to the position of Senior Partner, significantly contributing to the firm’s operations in South Africa. 

Background of the Scandal

Between 2012 and 2016, Sagar was implicated in a bribery scheme involving South African state-owned enterprises, notably Transnet SOC Ltd. and Eskom Holdings SOC Ltd. As a Senior Partner at McKinsey Africa, Sagar orchestrated payments to South African officials to obtain confidential information and secure lucrative consulting contracts for McKinsey.

Legal Proceedings

In December 2022, Sagar pleaded guilty to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) before the U.S. District Court for the Southern District of New York. He admitted to participating in a scheme to bribe South African officials in exchange for confidential information that benefited McKinsey’s business interests. The guilty plea was unsealed in December 2024: Press Release Number: 24-1520. 

Implications

As a result of the bribery scheme, McKinsey and its subsidiary, McKinsey Africa, earned approximately $85 million in profits. To resolve investigations by the U.S. Department of Justice and South African authorities, McKinsey Africa agreed to pay over $120 million and entered into a three-year deferred prosecution agreement. The firm acknowledged the misconduct and committed to implementing enhanced compliance measures to prevent future violations. 

Following these allegations, Sagar was dismissed from McKinsey for breaches of professional conduct and standards. Despite these legal challenges, he continues to lead Kalido, which has secured substantial venture capital funding and aims to democratize opportunities through technology. 

Current Roles

Following his departure from McKinsey, Sagar co-founded Kalido, a London-based technology startup that utilizes artificial intelligence to connect individuals and organizations with opportunities. Kalido was recognized as a Technology Pioneer by the World Economic Forum in 2020.

McKinsey & Company, a well connected entity

McKinsey & Company, established in 1926 by James O. McKinsey, is a prominent global management consulting firm headquartered in New York City. As of 2023, the firm employs approximately 45,000 professionals across 133 offices worldwide and reported revenues of $16 billion. Mckinsey & Company has seen several of its former senior partners transition into influential roles across various sectors. Notable examples include:

• Dominic Barton: Serving as McKinsey’s Global Managing Director from 2009 to 2018, Barton later became Canada’s Ambassador to China and currently holds the position of Chair of Rio Tinto.
• Sir Ian Davis: As McKinsey’s Managing Director between 2003 and 2009, Davis has since taken on roles such as Non-Executive Director at BP and Chairman of Rolls-Royce Holdings.
• Dame Vivian Hunt: After leading McKinsey’s UK and Ireland offices, Hunt was appointed Chief Innovation Officer at United Health Group and serves as President-elect of the Harvard Board of Overseers.

The Case of Two Colors

The “case of two colors” argument—often used to describe disparities in legal treatment based on power, influence, nationality, or race—could be debated in the cases of Vikas Sagar, a former McKinsey executive, and Manuel Chang, Mozambique’s former finance minister. Their legal outcomes present a stark contrast, despite both being implicated in large-scale financial corruption.

Manuel Chang was extradited, tried, and sentenced publicly in the U.S. to 8½ years in federal prison for approving fraudulent $2 billion loans that plunged Mozambique into economic turmoil. His case was widely publicized, with courts emphasizing the severity of his role in the scandal. In contrast, Vikas Sagar pleaded guilty under sealed proceedings in 2022, yet his sentencing has not been publicly disclosed. This lack of transparency raises questions about whether his cooperation with U.S. authorities played a role in securing lighter consequences or delaying a formal judgment.

The level of accountability in both cases also differs significantly. Chang was a senior government official who misused public funds, directly leading to an economic crisis in his country. On the other hand, Sagar, a corporate executive, played a role in facilitating corruption at McKinsey, yet the firm paid a $122 million fine, and no executives, including Sagar, have been publicly sentenced. This difference highlights the disparity between government corruption and corporate white-collar crime. While corporate executives frequently avoid jail time by negotiating settlements and plea deals, government officials—especially from developing nations—often face harsher legal consequences, particularly when international financial institutions demand accountability.

This disparity raises the question: Does “Two Colors of Justice” apply? The different legal outcomes suggest a systemic bias where corporate figures, particularly those connected to Western financial institutions, receive more lenient treatment, while African political leaders are aggressively prosecuted to set anti-corruption examples. According to David Lewis, former head of Corruption Watch South Africa, “If McKinsey’s corruption was serious enough to warrant a $122 million fine, why is the executive who facilitated the deals not facing public sentencing?”

This ethical dilemma leads to broader concerns about selective justice. Is the legal system applying different standards depending on corporate versus government crimes? Are African leaders punished more severely, while Western executives escape with financial penalties? The contrast between Chang’s public sentencing and Sagar’s opaque legal fate suggests that corporate criminals involved in high-level financial fraud often escape the same level of accountability as political figures from the Global South.

“If McKinsey’s corruption was serious enough to warrant a $122 million fine, why is the executive who facilitated the deals not facing public sentencing?“
— David Lewis, Former Head of Corruption Watch SA

This case raises a serious discussion about inconsistencies in how justice is served across different spheres of power and geography.