Financial Crime World

Seychelles: Paradise or Hellhole?

Located in the crystal-clear waters and powder-white beaches of Seychelles, a stark contrast exists between the haves and have-nots. On the surface, President James Michel’s commitment to democracy and social safety net for all citizens seems genuine. However, beneath this façade lies a complex web of corruption and cronyism.

Corruption and Cronyism

A recent investigation by The Sunday Times of London uncovered a shocking truth. In 1996, an undercover journalist posing as a Russian businessman was granted diplomatic status and allowed to set up a shell company with the help of island officials. The deal was approved at the highest levels, with Michel himself giving the green light for the arrangement.

The Elite’s Business Ventures

The Seychellois elite, including members of the powerful Savy family, have allegedly used their connections to amass vast fortunes through questionable business deals and real estate ventures. The Savys are said to own significant tracts of prime land, including Frégate Island, which was once lost in a poker game by Harry Savy.

Glenny Savy, a key figure in the government’s Islands Development Company, has been linked to Michel through offshore companies owned by his wife. Confidential records obtained by the International Consortium of Investigative Journalists reveal a network of British Virgin Islands entities that include a company listing Michel as a shareholder.

A History of Corruption

Seychelles’ history is marred by corruption and cronyism. In 1995, the Economic Development Act was enacted, offering immunity from prosecution to foreign nationals who invested at least $10 million in the local economy. Critics dubbed it a “Welcome, Criminals” banner, and international pressure eventually forced the government to back down.

Notorious Figures Seeking Asylum

The legacy of this law lives on. Notorious figures such as Radovan Krejčíř, a reputed Czech mob boss, have sought asylum in Seychelles, claiming they were offered new identities by leading politicians in exchange for financial support. Krejčíř is currently behind bars in South Africa, facing extradition to the Czech Republic.

Concerns About Reputation

The stories of Krejčíř and two other fugitives who have fled to Seychelles have raised concerns about the country’s reputation as a haven for criminals. The government has remained tight-lipped on the matter, refusing to comment on allegations of corruption and cronyism.

A Call for Change

As the world celebrates the beauty and uniqueness of Seychelles, it is crucial to remember that beneath its idyllic surface lies a complex web of power and corruption. The country’s leaders must take concrete steps to address these issues and ensure that the paradise they tout is truly accessible to all citizens.

Key Takeaways

  • Corruption and cronyism are prevalent in Seychelles, with government officials and elite families amassing vast fortunes through questionable means.
  • The country’s history of corruption has led to a reputation as a haven for criminals.
  • Concrete steps must be taken by the government to address these issues and ensure that all citizens have equal access to the country’s resources.