St Louis Gate
Government Corruption Scandal
CLASSIFICATION: Financial Crime
LOCATION
Port Louis, Mauritius
TIME PERIOD
2020
VICTIMS
0 confirmed
In 2020, a significant corruption scandal known as the St Louis Gate emerged in Mauritius, involving political appointees from the government, employees of the Central Electricity Board (CEB), and the Danish firm Burmeister & Wain Scandinavian Contractor (BWSC). The scandal was triggered by allegations that bribes were exchanged during the awarding of a 2014 contract for upgrading a diesel power station in St. Louis, near Port Louis, which led to an investigation by the African Development Bank after a whistleblower's report. Following parliamentary discussions led by Opposition Leader Arvin Boolell in June 2020, the entire CEB management team was dismissed by Prime Minister Pravind Jugnauth, and calls for further inquiry intensified. As of September 2020, Bertrand Lagesse, a consulting engineer for BWSC, was arrested for money laundering and corruption-related offenses, although he had reportedly erased critical digital evidence prior to his arrest. The investigation is ongoing, with several key figures interrogated and significant financial irregularities uncovered.
Investigators and the public believe that several employees of the Central Electricity Board were involved in accepting bribes from Burmeister & Wain Scandinavian Contractor, facilitated through a local intermediary. There are calls for a thorough investigation into the scandal, with demands for the resignation of the Deputy Prime Minister linked to the case. Additionally, observers have raised concerns about the justification for the large expenditures on the power station upgrade, given the low likelihood of a power blackout.
The St. Louis Gate Scandal: Unveiling Corruption in Mauritius
In the lush island nation of Mauritius, where palm trees sway in the ocean breeze, a storm of a different nature was brewing in 2020. This was not a natural disaster but a scandal that would rock the foundations of government and corporate integrity. Known as the Saint Louis Gate or Turbine Gate, this corruption case involved high-ranking political appointees, employees of the Central Electricity Board (CEB), and the Danish firm Burmeister & Wain Scandinavian Contractor (BWSC). It was a tale of betrayal, greed, and a quest for justice that unfolded in the corridors of power and through the pages of financial documents.
Background: A Tender with Strings Attached
The seeds of the scandal were sown in 2014 when the CEB issued a tender for a significant upgrade of a diesel power station at St. Louis, located on the outskirts of Mauritius' capital, Port Louis. BWSC, a Danish firm, won the contract, a seemingly straightforward transaction that belied the murky waters beneath.
In 2018, a whistleblower stepped forward, alerting the African Development Bank (ADB), the financier, of alleged bribery. According to the whistleblower, several CEB employees had received bribes through a BWSC intermediary, who owned a construction company in Mauritius. The ADB took the claims seriously, launching an investigation that culminated in BWSC's exclusion from all future work for 21 months. The stage was set for a scandal of monumental proportions.
Revelations: The Fallout Begins
The first public rumblings of the scandal surfaced in early June 2020, when Arvin Boolell, the Leader of the Opposition, raised the issue in Parliament. The revelation sent shockwaves through the political establishment. On June 14, 2020, Prime Minister Pravind Jugnauth took decisive action, standing down the entire management team of the CEB and appointing a new Board of Management.
As the scandal's details spilled into the public domain, the Opposition clamored for a thorough inquiry and demanded the resignation or dismissal of the implicated Deputy Prime Minister. Observers questioned the justification for such significant capital expenditures, given the low risk of a power black-out on the island.
In July 2020, the scandal tightened its grip on the contracting firm PAD & Company Limited (PAD & Co. Ltd.), which faced liquidity issues following revelations of fake bank guarantees tied to civil works contracts worth Rs 210 million. The firm was placed under voluntary administration, with BDO appointed as the administrator. Former CEB director Shamshir Mukoon and former PAD Co. director Alain Hao Thyn Voon found themselves in hot seats, interrogated by ICAC investigators.
The Arrest of Bertrand Lagesse
As the investigation deepened, the net finally closed on Bertrand Lagesse. On September 5, 2020, Mauritian authorities arrested Lagesse for violating Articles 3 (1) (b), 6, and 8 of the Financial Intelligence and Anti-Money Laundering Act. The charges dated back to May 2016 and painted a damning portrait of corruption. Lagesse, a consulting engineer for BWSC, was suspected of using corruption proceeds to acquire a property valued at 212,948 Euros (Rs 10 million) and to maintain Rs 8.17 million in a bank account. However, in a calculated move, Lagesse had already erased his telephone and computer records, complicating the investigation further.
Conclusion
The Saint Louis Gate scandal laid bare the vulnerabilities in Mauritius' governance structures. It was a saga of power, corruption, and the relentless pursuit of truth. As the island grappled with the fallout, the scandal served as a stark reminder of the vigilance required to safeguard public resources and maintain integrity in public and corporate arenas.
Sources
For a detailed account and further reading on the Saint Louis Gate scandal, you can explore the original Wikipedia article here.
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Tender Issued
The Central Electricity Board issued a tender for a major upgrade of the St. Louis power station.
Whistleblower Alert
A whistleblower informed the African Development Bank about alleged bribes related to the BWSC contract.
Parliament Inquiry
Leader of Opposition Arvin Boolell raised the St Louis Gate issue in Parliament, prompting public scrutiny.
Management Stand Down
The Prime Minister stood down the entire Management Team of CEB and appointed a new Board.
PAD & Co. Administration
Contracting firm PAD & Company Limited was placed under voluntary administration due to liquidity issues.
Arrest of Bertrand Lagesse
Consulting engineer Bertrand Lagesse was arrested for financial crimes related to the St Louis Gate scandal.
In 2020, a significant corruption scandal known as the St Louis Gate emerged in Mauritius, involving political appointees from the government, employees of the Central Electricity Board (CEB), and the Danish firm Burmeister & Wain Scandinavian Contractor (BWSC). The scandal was triggered by allegations that bribes were exchanged during the awarding of a 2014 contract for upgrading a diesel power station in St. Louis, near Port Louis, which led to an investigation by the African Development Bank after a whistleblower's report. Following parliamentary discussions led by Opposition Leader Arvin Boolell in June 2020, the entire CEB management team was dismissed by Prime Minister Pravind Jugnauth, and calls for further inquiry intensified. As of September 2020, Bertrand Lagesse, a consulting engineer for BWSC, was arrested for money laundering and corruption-related offenses, although he had reportedly erased critical digital evidence prior to his arrest. The investigation is ongoing, with several key figures interrogated and significant financial irregularities uncovered.
Investigators and the public believe that several employees of the Central Electricity Board were involved in accepting bribes from Burmeister & Wain Scandinavian Contractor, facilitated through a local intermediary. There are calls for a thorough investigation into the scandal, with demands for the resignation of the Deputy Prime Minister linked to the case. Additionally, observers have raised concerns about the justification for the large expenditures on the power station upgrade, given the low likelihood of a power blackout.
The St. Louis Gate Scandal: Unveiling Corruption in Mauritius
In the lush island nation of Mauritius, where palm trees sway in the ocean breeze, a storm of a different nature was brewing in 2020. This was not a natural disaster but a scandal that would rock the foundations of government and corporate integrity. Known as the Saint Louis Gate or Turbine Gate, this corruption case involved high-ranking political appointees, employees of the Central Electricity Board (CEB), and the Danish firm Burmeister & Wain Scandinavian Contractor (BWSC). It was a tale of betrayal, greed, and a quest for justice that unfolded in the corridors of power and through the pages of financial documents.
Background: A Tender with Strings Attached
The seeds of the scandal were sown in 2014 when the CEB issued a tender for a significant upgrade of a diesel power station at St. Louis, located on the outskirts of Mauritius' capital, Port Louis. BWSC, a Danish firm, won the contract, a seemingly straightforward transaction that belied the murky waters beneath.
In 2018, a whistleblower stepped forward, alerting the African Development Bank (ADB), the financier, of alleged bribery. According to the whistleblower, several CEB employees had received bribes through a BWSC intermediary, who owned a construction company in Mauritius. The ADB took the claims seriously, launching an investigation that culminated in BWSC's exclusion from all future work for 21 months. The stage was set for a scandal of monumental proportions.
Revelations: The Fallout Begins
The first public rumblings of the scandal surfaced in early June 2020, when Arvin Boolell, the Leader of the Opposition, raised the issue in Parliament. The revelation sent shockwaves through the political establishment. On June 14, 2020, Prime Minister Pravind Jugnauth took decisive action, standing down the entire management team of the CEB and appointing a new Board of Management.
As the scandal's details spilled into the public domain, the Opposition clamored for a thorough inquiry and demanded the resignation or dismissal of the implicated Deputy Prime Minister. Observers questioned the justification for such significant capital expenditures, given the low risk of a power black-out on the island.
In July 2020, the scandal tightened its grip on the contracting firm PAD & Company Limited (PAD & Co. Ltd.), which faced liquidity issues following revelations of fake bank guarantees tied to civil works contracts worth Rs 210 million. The firm was placed under voluntary administration, with BDO appointed as the administrator. Former CEB director Shamshir Mukoon and former PAD Co. director Alain Hao Thyn Voon found themselves in hot seats, interrogated by ICAC investigators.
The Arrest of Bertrand Lagesse
As the investigation deepened, the net finally closed on Bertrand Lagesse. On September 5, 2020, Mauritian authorities arrested Lagesse for violating Articles 3 (1) (b), 6, and 8 of the Financial Intelligence and Anti-Money Laundering Act. The charges dated back to May 2016 and painted a damning portrait of corruption. Lagesse, a consulting engineer for BWSC, was suspected of using corruption proceeds to acquire a property valued at 212,948 Euros (Rs 10 million) and to maintain Rs 8.17 million in a bank account. However, in a calculated move, Lagesse had already erased his telephone and computer records, complicating the investigation further.
Conclusion
The Saint Louis Gate scandal laid bare the vulnerabilities in Mauritius' governance structures. It was a saga of power, corruption, and the relentless pursuit of truth. As the island grappled with the fallout, the scandal served as a stark reminder of the vigilance required to safeguard public resources and maintain integrity in public and corporate arenas.
Sources
For a detailed account and further reading on the Saint Louis Gate scandal, you can explore the original Wikipedia article here.
No Recent News
No recent news articles found for this case. Check back later for updates.
No Evidence Submitted
No evidence found for this case. Be the first to submit evidence in the comments below.
Join the discussion
Loading comments...
Tender Issued
The Central Electricity Board issued a tender for a major upgrade of the St. Louis power station.
Whistleblower Alert
A whistleblower informed the African Development Bank about alleged bribes related to the BWSC contract.
Parliament Inquiry
Leader of Opposition Arvin Boolell raised the St Louis Gate issue in Parliament, prompting public scrutiny.
Management Stand Down
The Prime Minister stood down the entire Management Team of CEB and appointed a new Board.
PAD & Co. Administration
Contracting firm PAD & Company Limited was placed under voluntary administration due to liquidity issues.
Arrest of Bertrand Lagesse
Consulting engineer Bertrand Lagesse was arrested for financial crimes related to the St Louis Gate scandal.