The Mozambican was arrested as part of an operation targeting individuals accused of involvement in a $ 2 billion fraud scheme connected to security firms in Mozambique.
Chang denies any wrongdoing and his lawyers argued on Tuesday that his detention in South Africa was illegal and that he should be released.
Lawyers argued that they would challenge the legality of his arrest as police had not received a formal extradition request.
Chang has been held in South Africa since December 29 as part of a U.S. case that has seen arrests in London and New York and overtaken Mozambique’s own investigation into the matter.
According to media reports monitored by APA on Tuesday, some Mozambicans gathered outside the court in Pretoria to support his extradition.
During Tuesday’s hearing one of Chang’s lawyers argued that his arrest and subsequent detention were unlawful because a request for his extradition to the United States had not yet been received.
“The consequence of these facts, is to render the arrest and further detention of Mr Chang illegal because his arrest was effectively on terms of an ineffective warrant,” the lawyer Willie Vermeulen reportedly said.
Three former employees of the Swiss investment bank Credit Suisse were arrested in London last week.
US prosecutors say that through a series of financial transactions between approximately 2013 and 2016, they created fraudulent maritime projects and used state-owned companies in Mozambique as fronts to raise $2 billion.
Credit Suisse made clear that no action had been taken against the bank itself.
Mozambique’s government revealed in 2016 to undisclosed lending, prompting the IMF and foreign donors to cut off support, triggering a currency collapse and a default on Mozambique’s sovereign debt.
It is still struggling to overcome the resultant debt crisis.