US $50 million theft/corruption and firearms/terrorism cases |11 November 2022
ACCS says no one should be allowed to use company funds as a private purse from which to pay criminal legal fees
Chief Justice of the Supreme Court of Seychelles, Rony Govinden, yesterday ruled in the combined US $50 million theft/corruption and firearms/terrorism cases, that the first defendant, Mukesh Valabhji may, subject to certain conditions, pay his and his wife Laura Valabhji’s legal fees from the bank account of one of his companies.
The Anti-Corruption Commission of Seychelles (ACCS) had submitted that Art 19(2) of the Constitution ensured the right of an individual to legal representation of his own choice and to pay criminal legal fees “at the person’s own expense”; and that should mean from his own personal bank accounts. The ACCS submitted that he should not be allowed to use company funds as a private purse from which to pay his criminal legal fees.
The issue came to court because although legal fees of US $450,000 were paid in January 2022, by Mr Valabhji from a bank account in Singapore, an invoice for legal fees amounting to US $1.6 million was raised in July 2021, for Zil Pasyon Resorts Ltd to pay, which was queried by ACCS and later withdrawn; subsequently, an invoice for £540,000 was raised in October 2022, for Felicite Island Development Ltd to pay, which the ACCS invited the court to rule on the principle of whether that should be paid from a personal bank account or a company’s business account.
The chief justice ruled that ACCS Restriction Notices imposed on company bank accounts may be lifted subject to the following conditions being met:
1 Mr Valabhji must prove that he has a proprietary interest in the company (for fees to be paid up to the limit of his financial interest in that company);
2 There must be a particularised invoice for bona fide legal services by a firm or legal practitioner;
3 The company must confirm that the payment of the invoice is in compliance with the relevant company law of the Seychelles.
The ACCS will accordingly vary the Restriction Notice in respect of any company account as soon as those conditions are met. It remains open to Mr Valabhji to nominate personal bank accounts for his legal fees to be paid.
The ACCS is committed to ensuring that the message goes out that no one is above the law and that those who commit crime should be brought to justice.
Press release from ACCS