The STCL audit Seychelles findings have prompted the government to refer the case to investigators, according to the Office of the President.
The Office said it took immediate action after a special audit of the STCL cold storage facility project identified serious issues. As a result, authorities have formally referred the matter to the Seychelles Police Force’s Financial Crime Investigation Unit and the Anti-Corruption Commission Seychelles for investigation.
The audit report was presented at State House to the Minister for Finance, Economic Planning, Trade and Investment, Pierre Laporte on Thursday 19 March. It recommended further action.
The report identified weaknesses in procurement, financial management and project oversight. It also found that the contract was awarded through a non-competitive process. In addition, it said due diligence was not adequate. The report further noted that engagement with the contractor began before the company’s formal incorporation.
The project’s cost increased during implementation. It rose from an initial estimate of about $5.5m to around $7.6m. This represents an overrun of nearly $2.1m. Moreover, the audit flagged certain payments for further review, including a force majeure claim exceeding $500,000.
President Dr Patrick Herminie said the government acted in response to the findings. He stated: “This Administration remains resolute in safeguarding public funds and restoring trust in public institutions. There will be accountability.”
He also said the government will not tolerate misconduct. “Where wrongdoing is established, those responsible will be held fully accountable under the law,” he added.
The Office of the President said the decision reflects the seriousness of the findings and the level of public funds involved. It added that authorities will carry out a full and independent investigation.
Finally, the Office of the President reaffirmed its commitment to transparency and accountability. It said it will continue to inform the public of any significant developments.