Financial Crime World

Corruption Scandal Rocks Seychelles: A Year On, Questions Remain Unanswered

Background and Controversy

A year ago, on November 18, prominent businessman Mukesh Valabhji and his wife Laura, a lawyer, were arrested by police on suspicion of money laundering to the tune of $50 million. The case has been marred by controversy and raises serious questions about bribery and corruption in finance in Seychelles.

The investigation is linked to a $50 million grant made by the United Arab Emirates to the Seychelles government in 2002, which was allegedly used to pay for hotels sold during the privatization of state-owned enterprise COSPROH. The prosecution claims that the funds were transferred to a bank account of the Seychelles Marketing Board (SMB), now known as the Seychelles Trading Company (STC), and then returned to Seychelles.

Key Players Implicated in the Scandal

  • Leslie Benoiton, a former senior officer in the Seychelles Defence Forces, was arrested for his alleged involvement with a cache of arms discovered during a search at the Valabhji residence.
  • Two former government ministers, Maurice Loustau-Lalanne and Leikha Nair, were also arrested and charged with money laundering.
  • Sarah Zarqhani Rene, the wife of late President France Albert Rene, was arrested in connection to the case.
  • Retired brigadier Leopold Payet, a former Chief of the Seychelles People’s Defence Forces (SPDF), was also implicated.
  • 81-year-old Frank Marie, a presidential chief security officer, was charged with various offenses related to money laundering, corruption, and the possession of firearms.

Developments in the Case

  • The case has seen several twists and turns over the past year, including the transfer of powers from the Anti-Corruption Commission of Seychelles (ACCS) to the Office of the Attorney General due to limitations in the AMLFT Act.
  • Charges were amended, with some accused released or having their charges dropped.

Uncertainty and Questions Remain

Despite these developments, questions remain about the extent of bribery and corruption in finance in Seychelles. The Supreme Court has set a date for the trial of the remaining suspects, but it remains unclear when justice will be served in this high-profile case.

The case has raised important questions about the level of transparency and accountability in Seychelles’ financial sector, and the need for further reforms to prevent such scandals from occurring in the future.