President Refers STC Cold Storage Audit to Anti-Corruption Commission
VICTORIA: In a decisive follow-up to the recent special audit of the Seychelles Trading Company (STC) cold storage project, the Office of the President has officially referred the findings to the Financial Crime Investigation Unit (FCIU) and the Anti-Corruption Commission of Seychelles (ACCS).
The move follows what State House described as “serious findings” regarding the procurement and execution of the facility, which was originally intended to bolster the nation’s food security but has instead become the center of a major financial probe.
Referral for Criminal Investigation
The referral marks a shift from administrative review to potential criminal proceedings. President Patrick Herminie, who initially requested the audit, took the step after the Auditor General’s report identified significant irregularities that suggest more than just procedural errors.
According to a statement from the President’s Office, the decision to involve the ACCS and the police stems from the need to determine if there was deliberate malpractice or corruption involved in the awarding of multimillion-dollar contracts. The audit notably found that the primary contract was awarded to a private entity, Sey Turk Limited, before the company had even been formally incorporated—a fundamental breach of public procurement law.
Scope of the Probe
The investigators are expected to focus on several key areas highlighted in the Auditor General’s report:
- The Procurement Process: Examining why a direct bidding process was used without sufficient justification and how a non-registered entity was allowed to participate.
- Cost Overruns: Investigating the 39 percent increase in project costs, which saw the price tag jump from an approved US $5.5 million to over US $7.6 million.
- “Force Majeure” Claims: Reviewing the legitimacy of a US $500,000 payment made for unforeseen circumstances that were reportedly not covered in the original contract terms.
Accountability and Next Steps
The Auditor General has already noted that the lack of technical and financial due diligence on the contractor led to a facility that has suffered from repeated operational failures, including the recent loss of 74 tonnes of imported onions due to equipment malfunction.
While no specific individuals have been named as suspects at this stage, the referral to the ACCS grants investigators the power to freeze assets and subpoena financial records of those involved in the project’s decision-making chain between 2021 and 2025.
“The government remains committed to the principle of transparency,” the President’s statement concluded. “Where there is evidence of the misappropriation of public funds, those responsible must be held accountable to the full extent of the law.”
The ACCS has confirmed receipt of the file and indicated that a preliminary review is underway to determine the priority of the investigation.
