Banking Fraud Cases Rock Seychelles as Millions Go Missing
Seychelles, a tiny island paradise, has been rocked by a massive corruption scandal involving $50m (£37m) of missing foreign aid. The case has delighted some islanders but has also courted danger for others.
The Case: A 20-Year-Old Scandal
The money was donated to the Seychelles 20 years ago from the United Arab Emirates to help overcome a foreign exchange shortage and pay for basic necessities such as rice, flour, and cooking oil. However, instead of being used for its intended purpose, it was allegedly siphoned off by a close ally of former President Albert René and laundered through a murky privatisation of undervalued public assets.
The Accused
Six prominent citizens have been charged in connection with the scandal:
- Mukesh Valabhji, a businessman and former economic advisor to President René
- Laura Valabhji, his wife, a lawyer
- Leslie Benoiton, a former lieutenant colonel in the armed forces and René’s son
- Lekha Nair, a former government official in the finance ministry
- Maurice Loustau-Lalanne, a former finance minister and tourism minister
- Sarah René, the widow of President René
The Discovery of Military Weapons
The discovery of a vast cache of military weapons at the homes of two of the accused has added to the scandal, sparking concerns about the safety of those involved.
The Investigation
Anti-Corruption Commissioner May de Silva is leading the investigation, which involves searching for missing funds that are believed to be still in bank accounts and have been accruing interest over the past 20 years.
The Impact on Seychelles
The case has sent shockwaves through Seychelles, with many islanders hopeful that the recovered funds will be used to improve their living conditions. “The money they recover can be used to build better roads and more houses,” said Derrick Labrosse, a 25-year-old fisherman. “We can build a new hospital and schools.”
President’s Vow
President Wavel Ramkalawan has vowed to stamp out corruption in his country, which had become synonymous with the 43-year regime of René’s party. “This administration has zero tolerance for corruption and we will try to return every single cent back into government coffers because the money was for the people of Seychelles and this crime will not be forgiven,” he said.
International Interest
The investigation is being closely watched by friendly foreign donors, as well as the EU, IMF, and World Bank, which have an interest in bringing financial regulatory compliance to a once-notoriously shady offshore tax haven.