Times Times • 2 months ago

[Arrest of Sattar Hajee Abdoula] Rs 3.7 million Under Investigation by the FCC

Sattar Hajee Abdoula, the ‘blue-eyed boy’ of Pravind Jugnauth and a key figure in finance and insolvency in Mauritius, is starting to face the consequences of his actions. The 66-year-old, a central figure at Grant Thornton and former director of Air Mauritius, was arrested by the Financial Crimes Commission (FCC) on Wednesday, November 19, after several hours of questioning under caution. The investigation has uncovered a significant issue: a payment of Rs 3.7 million made on March 31, 2020, to a Grant Thornton account, which investigators suspect is linked to criminal activities.

Following his summons to the FCC headquarters, the former president of SBM and MK attempted a familiar maneuver used by many high-profile individuals accused of money laundering. Just as his detention was about to be formalized, he claimed to be in a ‘concerning state of health’ and was transferred to Jeetoo Hospital, thereby avoiding a first night in police custody.

Sattar Hajee Abdoula was presented on Thursday afternoon before the Port Louis court, facing a provisional charge of money laundering. Authorities accuse him of having held Rs 3.7 million, believed to originate from criminal activities, deposited in the account of Grant Thornton Ltd, where he serves as a director.

During the hearing, the defendant's lawyer, Me Raouf Gulbul, mentioned his client's precarious health and filed a bail request. However, the FCC strongly opposed this request, citing concerns about evidence tampering and the possibility of the defendant evading justice. Magistrate Shaheen Inshirah Daureeawoo ordered that all necessary measures be taken in case the suspect requires medical care, and postponed the bail decision to November 26. After the hearing, Sattar Hajee Abdoula was taken into police custody.

This arrest pertains to a contract between Grant Thornton Ltd and Airmate Ltd, a subsidiary of Air Mauritius, during the voluntary administration period of MK, which he himself managed. The contract, reportedly worth Rs 5 million for administrative services, allegedly led to potential additional payments reaching Rs 15 million, according to the FCC.

Investigators are trying to establish the reasons and legitimacy behind the Rs 3.7 million transfer made while Sattar Hajee Abdoula was the Chief Executive Officer of Grant Thornton. Alarmingly, no tender process appears to have been initiated by Airmate. Preliminary findings indicate that payments exceeding Rs 3 million, classified as ‘Advisory Services’ to Grant Thornton, were not justified based on the documents reviewed thus far. Investigators believe that the full range of services promised was not delivered, despite the amounts received. Some funds from Air Mauritius may have moved to Grant Thornton without adequate justification.

On Thursday, investigators interviewed Mariam Rajabally, a business partner from the firm, as a witness before allowing her to leave. She stated that decisions during that time were made by Sattar Hajee Abdoula. Her testimony is a key step in understanding the decision-making structure in the firm at the time. She reiterated that decisions made then were solely the responsibility of Sattar Hajee Abdoula, a crucial point for investigators to establish accountability.

Considered one of the ‘favorites’ of the former MSM regime, Sattar Hajee Abdoula held several strategic positions:

  • Director of Air Mauritius during the pandemic

  • President of SBM Holdings

  • Key player in the liquidation of the BAI group and management of the Bramer Bank case

  • Significant influence within Grant Thornton

For his role as director of Air Mauritius between April 2020 and September 2021, he received Rs 141 million, despite the airline claiming to be on the brink of financial collapse, advocating for mass layoffs, and the sale of aircraft.

This initial case is just the beginning. Other investigations are underway, particularly regarding the voluntary administration of Air Mauritius, disputed payments, and past transactions related to the dismantling of BAI.

Dawood Rawat, former head of the BAI group, recently filed a complaint with the FCC, requesting a criminal investigation into events from 2015. He even provided an audio recording in which a promise of immunity was allegedly offered in exchange for the return of assets abroad.

The FCC is continuing to review accounting documents, contracts, and internal communications to determine if the payments corresponded to the reported activities. Investigators are meticulously examining each element to ascertain whether the funds were used in accordance with contractual obligations or for other purposes. The FCC aims to trace the origin, justification, and exact use of the received amounts.

At this stage, authorities maintain their stance: the payment of Rs 3.7 million and the alleged unjustified payments exceeding Rs 3 million raise enough questions to warrant a thorough investigation and the continued detention of the accused.

In legal and political circles, there are no illusions: this first arrest could signal the beginning of a much larger process to shed light on a decade of contested financial practices at the top of public institutions. The next step in this case will be the decision on the bail request, expected on November 26.

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