Financial Crime World

Banking Fraud Cases Rock Seychelles: A Year After Arrests, Trial Looms

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Exactly a year ago, prominent businessman Mukesh Valabhji and his wife Laura, a lawyer, were arrested by police on suspicion of money laundering $50 million. The case has since been shrouded in controversy, with several high-level officials and even the former First Lady arrested and charged.

The Investigation

The investigation centers around $50 million granted to the Seychelles’ government by the United Arab Emirates in 2002. Prosecutors claim that the funds were misused, allegedly returning to Seychelles to pay for hotels sold during the privatisation of state-owned enterprise COSPROH. The cash was initially transferred to a bank account held by the Seychelles Marketing Board (SMB), now known as the Seychelles Trading Company (STC), at Baroda Bank in England.

Arrests and Charges

Since the arrests, several key figures have been taken into custody, including:

  • Leslie Benoiton, a former senior officer in the Seychelles Defence Forces
  • Sarah Zarqhani Rene, the wife of late President France Albert Rene
  • Two former officers of the Seychelles Defence Forces, Leopold Payet and Frank Marie

All six suspects were formally charged last December. Mukesh Valabhji faces charges related to conspiracy to commit official corruption and money laundering, while his wife Laura was charged with money laundering.

The Case Developments

  • Bail was granted to some suspects, but not others. Benoiton remains on remand, as do the Valabhi couple.
  • Former government officials Lekha Nair and Maurice Loustau-Lalanne were granted bail after posting significant bonds.
  • Charges against Nair and Loustau-Lalanne were dropped in May.

Recent Developments

  • The Supreme Court granted bail to Laura Valabhji’s co-accused, Sarah Zarqhani Rene, who was released from custody after paying a significant bond.
  • Laura Valabhji remains on remand pending further investigations.

Upcoming Trials

The trial is set to begin in the coming months:

  • Corruption case: April 13, 2023
  • Arms and ammunition trial: December 1

As Seychelles grapples with the aftermath of this high-profile banking fraud scandal, many are left wondering what other secrets may be hidden beneath the surface.