The Anti-Corruption Commission of Seychelles (ACCS) has issued an update on its progress on Operation 'Black Iron', the investigation and prosecution of Seychellois businessman Mukesh Valabhji and former First Lady Sarah Zarqani Rene for alleged theft of state assets, corruption and money laundering.
Mukesh Valabhji, a former economic advisor of late President France Albert Rene, was arrested in November 2021 together with his wife Laura, following an investigation into the alleged theft of a $50 million loan to Seychelles by the United Arab Emirates in 2002.
He is alleged to have used his position to divert funds to bank accounts around the world for his personal benefit.
ACCS said in a press statement on Friday that since the arrest of Valabhji, in collaboration with international law enforcement agencies and diplomatic partners, it has gathered evidence of a more significant network of corruption involving him.
"The evidence suggests that the amount unlawfully acquired by Mukesh Valabhji from his activities could amount to as much as $100 million (SCR1,400,000,000), laundered through a network of companies and accounts in locations including Switzerland, the Middle East, the British Virgin Islands, Singapore, and the United Kingdom. One of the alleged recipients of laundered funds is Sarah Rene, who is accused of acquiring substantial funds into bank accounts in Australia," said ACCS.
The Commission has sought permission to file additional charges in relation to Valabhji's alleged corruption in the management of two state-owned agencies between 1992 and 2006 - Compagnie Seychelloise de Promotion Hoteliere (COSPROH) and the Seychelles Marketing Board (SMB).
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"Mukesh Valabhji is now accused of corruptly obtaining a financial benefit from the sale of luxury hotels on behalf of COSPROH as well as unlawfully removing over $18 million from the SMB," said ACCS.
The Commission has since obtained Seychelles' first global restraint orders to prevent the assets of the defendants from being moved or lost until the conclusion of the trial. It has successfully resisted attempts to amend these orders to allow these assets to be removed and/or spent otherwise than what is permitted by the law.
In the event Valabhji and/or Zarqani Rene are convicted, the ACCS will seek the recovery of these funds on behalf of the government of Seychelles and its people.
The ACCS said it "is committed to ensuring its prosecution is fair and in accordance with international standards and will continue to support the Court in the protection of the defendants' rights to a fair trial under Seychelles' Constitution."
Valabhji and his wife Laura have been separately charged by the Attorney General's Office with the unlawful possession of firearms and terrorism offences and this trial is ongoing.
The corruption and money laundering case will start when the unlawful possession of firearms and terrorism offences ends.
