Menlo Park Rs45 Million Scandal: Padayachy Accused of Undue Pressure

Renganaden Padayachy finds himself embroiled in a scandal surrounding a dubious loan of one million dollars, granted by the Mauritius Investment Corporation (MIC) to Menlo Park Ltd in October 2024. This loan, which was initially deemed too risky, has now become the focal point of allegations of undue pressure exerted by the former Minister of Finance.

Interrogation of Key Figures

On Tuesday, 15 April 2025, Jitendra Bissessur, the former Chief Executive Officer of the MIC, and Harvesh Seegolam, the former Governor of the Bank of Mauritius, were summoned by the Anti-Money Laundering Unit (AML) for questioning.

Following their interrogation at Sterling House, they were permitted to leave, but not before levelling serious accusations against Padayachy.

Both men have asserted that Padayachy pressured the MIC to approve the loan application, which had been previously rejected.

Impending Summons for Padayachy

The impending summons of Renganaden Padayachy by the AML, a division of the Central Criminal Investigation Department (CCID), looms large.

Freshly released on bail in connection with the controversial acquisition of the Ambre Hotel, Padayachy now faces allegations of coercion regarding the one million dollar loan (approximately Rs 45 million) extended to Menlo Park Ltd just prior to the legislative elections.

Damning Testimonies

Bissessur and Seegolam’s claims are particularly damning. During their testimonies, they recounted how Padayachy allegedly influenced the loan’s approval process.

Seegolam, accompanied by his lawyer, Me Imtihaz Mamoojee, recounted the establishment of the MIC, stating, “Padayachy granted the authorisation for the MIC to be formed.”

He elaborated on the circumstances surrounding the incorporation of this entity, clarifying that the MIC operated independently of the Bank of Mauritius, despite the financial turmoil that followed the COVID-19 pandemic.

Revelations of Financial Reserves

In a noteworthy revelation, Seegolam disclosed that a staggering sum of 2 billion dollars was available within the Bank of Mauritius’ Foreign Exchange reserves, funds that he claimed were intended for injection into the MIC.

As he exited the CCID premises, Me Shyam Servansing, representing Bissessur, informed the Défi Media Group that the investigation into his client was nearing completion:

“The end is drawing near. I am providing a bit more information.” He expressed anticipation for the next steps in the unfolding saga.

Previous Allegations Against Padayachy

It is crucial to recall that during previous hearings, Bissessur had already implicated the former Finance Minister in alleged coercive actions.

According to the investigation led by Assistant Superintendent of Police Balmick Dussoye from the AML, Menlo Park Ltd had initially sought an equity investment of 6.3 million dollars (approximately Rs 285 million) for an artificial intelligence project.

However, on 12 July 2024, this request was unequivocally rejected by the MIC’s board, labelled as a “Highly Risky Project.”

Subsequently, it is alleged that pressure was applied to the MIC board to approve a revised request of one million dollars.

Stéphane Adam’s Summons and Travel Request

Meanwhile, Stéphane Adam, one of the directors of Menlo Park Ltd, was also summoned to the AML on the same day.

Already facing provisional charges of “conspiracy to defraud,” he was asked to provide further details regarding the circumstances surrounding the one million dollar financial assistance obtained by his communications firm from the MIC.

Exercising his right to silence, Adam nonetheless requested permission to travel, a plea that will be considered by the court on Friday, 18 April 2025.

However, Defi Media sources suggested that the AML may oppose this request, particularly as Adam’s passport has been retained by the unit since his arrest on 4 March.

As he departed Sterling House, Adam refrained from making any public comments, leaving the unfolding drama shrouded in uncertainty.

Source: Defi Media