Financial Crime World

Banking Fraud Cases Rock Seychelles: Six Suspects Charged in $50 Million Scandal

The Seychelles Supreme Court has charged six suspects in connection with a major banking fraud scandal involving the disappearance of $50 million. The funds were granted to the government of Seychelles by the United Arab Emirates in 2002 and transferred to a bank account belonging to the Seychelles Marketing Board (now the Seychelles Trading Company) at a Baroda bank in England.

Charges and Suspects

  • Mukesh Valabhji, a prominent businessman, was charged with conspiracy to commit official corruption contrary to sections 91 and 381 of the penal code.
  • His wife Laura Valabhji has been charged with money laundering.
  • Andre Leslie Benoiton, a senior officer in the Seychelles Defence Forces, was charged with money laundering for corruptly obtaining $100,000 from Mukesh Valabji without lawful authority or excuse.
  • The other three suspects charged with money laundering are:
    • Lekha Nair, a former director general in the Ministry of Finance
    • Maurice Loustau-Lalanne, a former government official
    • Sara Zarqhani Rene, the widow of former President France Albert Rene

Case Details

According to the Anti-Corruption Commission of Seychelles, Nair allegedly allowed the money to be diverted into personal bank accounts set up for Mukesh Valabhji’s use. Bail was granted for Nair, Loustau-Lalanne, and Zarqhani Rene, while the Valabji couple and Benoiton will remain in police detention for at least another 14 days.

Bail Conditions

  • Nair: Released after paying a SCR50,000 ($3,768) bail bond and reporting to the Beau Vallon Police Station on Monday at 5 pm.
  • Loustau-Lalanne: Released on bail after paying SCR250,000 ($18,837) and providing two sureties of SCR100,000 ($7,535) each as well as handing over his passport to authorities. He must report to the Mont Fleuri Police Station every day at 9 am.
  • Zarqhani Rene: Bail was set at $2 million with two sureties of $1 million each due to her high net worth and potential to interfere with the case. However, Zarqhani Rene expressed skepticism about paying the bail, stating “of course I won’t pay it! Where will I get the money from?”

Next Court Appearance

The six accused are scheduled to reappear before the Supreme Court on December 30.