15 August 2024, Seychelles.
The ACCS has issued an update on its progress on Operation 'Black Iron', the investigation and prosecution of Mukesh Valabhji and Sarah René for alleged theft of state assets, corruption and money laundering.
Mukesh Valabhji was arrested in November 2021 following an investigation into the alleged theft of a USD $50 million loan to Seychelles by the United Arab Emirates in 2002. At the time, Mukesh Valabhji was the Economic Advisor to former President René and is alleged to have used his position to divert funds to bank accounts around the world for his personal benefit.
Since his arrest, the ACCS, in collaboration with international law enforcement agencies and diplomatic partners, has gathered evidence of a more significant network of apparent corruption involving Mukesh Valabhji. The evidence suggests that the amount unlawfully acquired by Mukesh Valabhji from his activities could amount to as much as USD $100 million (SCR 1,400,000,000), 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 René, who is accused of acquiring substantial funds into bank accounts in Australia.
The ACCS has sought permission to file additional charges in relation to Mukesh 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'). 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 USD $18 million from the SMB.
The ACCS has since obtained Seychelles' first global restraint orders to prevent the defendants' assets being moved or lost until the conclusion of the trial and 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 Mukesh Valabhji and/or Sarah René are convicted, the ACCS will seek the recovery of these funds on behalf of the Government of Seychelles and its people.
The ACCS 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.
Mukesh Valabhji is separately charged by the Attorney General's Office with the unlawful possession of firearms and terrorism offences. This trial is ongoing and must conclude before Mukesh Valabhji's ACCS trial can begin.
The content of this update is all a matter of public record having been raised in open court. The ACCS will endeavour to update the public on its case wherever possible as it progresses.
Notes to Editors:
- Mukesh Valabhji served under President France-Albert René as Chairman of COSPROH (1991 to 2004), General Manager of SMB (1991 to 2006), Executive Chairman of PUC (1996 to 2006) and as Economic Advisor to the President.
- Sarah René was the wife of President France-Albert René from 1992 until his death in 2019.
- Mukesh Valabhji and Sarah René are charged by the ACCS with the below matters (CR114 of 2021). The ACCS has not sought their remand in custody since May 2022 and both defendants have been on bail, although Mukesh Valabhji is remanded in custody in relation to the firearms/terrorism trial.
- The charges filed against Mukesh Valabhji include one count of conspiracy to steal USD $50 million, seven counts of corruption and seven counts of money laundering. Challenges to these charges have been made on behalf of Mukesh Valabhji in the Constitutional Court.
- Sarah René is charged with eight counts of money laundering.
The ACCS was set up by the Anti-Corruption Act 2016. We are a self-governing, neutral and independent body which is not subject to the direction or control of any person or authority, and we are empowered to act as a prosecuting authority. We are committed to fighting corruption through effective investigation, detection and prevention of corrupt practices for a corruption free Seychelles. We are a robust institution that fosters a corruption free society in an environment of integrity, accountability and transparency.