Former Finance Minister Manuel Chang is in detention in New York, where his trial in the Hidden Debts case is scheduled to begin this Monday.

Chang is pointed out as the main player in the Mozambican state's biggest financial default to the tune of more than 2.7 billion dollars.

The scandal involved international financial institutions such as Credit Suisse.

The US court alleges that Chang was among the corrupt officials who conspired with Credit Suisse bankers to further indebt Mozambique with loans granted from 2013 onwards for dubious maritime projects, including shipyards, anti-piracy vessels and a tuna fishing fleet, reports Bloomberg.

Mozambique later defaulted on its obligations to guarantee the loans and prosecutors allege that at least 500 million dollars were looted.

Hidden debts: Mozambique's burden reduced from usd 1.4 billion to 220 million dollars

Chang allegedly pocketed five million dollars in bribes and facilitated the laundering of 200 million dollars in money channeled to Mozambican officials. The fraud also caused "a serious financial crisis" in the country, according to prosecutors from the Brooklyn office of US Attorney Breon Peace.

Chang's trial is expected to last five weeks, and include testimony from former Credit Suisse banker Andrew Pearse, who admitted to receiving at least 45 million dollars for his role in arranging the loans and who was the government's star witness in the previous case. Pearse testified that he accepted bribes, in part, to finance trips with a subordinate with whom he was having a secret love affair. (Image: DR)