Seychelles: Financial Fraud Cases Mark One Year Since Arrests

A year has passed since prominent businessman Mukesh Valabhji and his wife Laura, a lawyer, were arrested by police on suspicion of money laundering $50 million. The couple has been on remand since then.

Background to the Case

The case is linked to $50 million granted to the Seychelles government by the United Arab Emirates in 2002. Prosecutors claim that the funds were returned to Seychelles to pay for hotels sold during the privatization of state-owned enterprise COSPROH holdings.

Arrests and Charges

Since their arrest, several high-level officials and a former First Lady have been arrested and charged with various crimes:

• Leslie Benoiton, a senior officer in the former Seychelles People’ Defence Forces, was arrested after police discovered a cache of arms at the Valabhji residence.
• Maurice Loustau-Lalanne, a former minister and director of COSPROH, and Leikha Nair, a former director general at the Ministry of Finance, were also arrested.
• Sarah Zarqhani Rene, wife of late President France Albert Rene, was arrested on November 27 as part of the ongoing case.

Charges and Bail

All six suspects were formally charged in December last year. The Valabhjis face charges related to money laundering and official corruption, while Benoiton is accused of money laundering for corruptly obtaining $100,000 from Mukesh Valabhji. Nair, Loustau-Lalanne, and Zarqhani Rene face money laundering charges.

Four of the suspects were granted bail, but the Valabhjis and Benoiton remain on remand.

Amended Charges and Trial Dates

Amended charges have been filed against some of the accused, and charges were dropped against Nair and Loustau-Lalanne in the money laundering case. Laura Valabhji remains on remand pending further investigations.

The Supreme Court has set:

• December 1 for the trial of the arms and ammunition case
• April 13, 2023, for the corruption case