In December ‘05, Savoy Hotel in Moscow had his 2nd birth, with a reconstruction costing over US$20million. It became the first Russian representative in the prestigious league of «Small Luxury Hotels of the World».
The redesign of this Moscow landmark was done by Leonardo Tognoni, who previously restored Palazzo Barberini and Borghese Gallery in Rome, as well as Uffizi Gallery in Florence. The retro style of the hotel’s past is in tune with the fashions of today. Owned by the Guta group, this hotel has a very close link with one of our very own landmarks – The Coral Strand Hotel. It did not have to suffer the same fate as Plantation Club as the deal was orchestrated slickly…
Whilst embarking on the lavish restoration of The Savoy, the owners were scouting the world for a safe haven to do a little dry-clean of some nice dosh. They ended up on the shores of Beau Vallon where they were offered a lifetime opportunity deal. Seychelles is on the verge of bankruptcy and they are desperate for cash! This can be any cash as the President of the time (Albert Rene) stated that he did not care what colour the cash was… Russkaya Mafiya, from Russia with love! Ti takaya dobraya. Ty tak nuzshna mne!!
The complete opposite of their Italian counterparts, the boys from the cold war are experts at clean transactions. Armed with an ex-minister as their legal adviser, all doors would be open in no time. As they toured around the islands in a helicopter, they viewed all the potential ‘investment’ opportunities but fell in love with the most prized property on Mahe. With Coral Strand at one end, they had found their perfect spot in Paradise at give away prices. And with this SPPF administration, we can always work out a deal as they are so desperate anyway. The right pressure was exerted on the existing owner of Coral Strand and soon he was a persona non gratta in Seychelles! The Guta group acquired this favourite Seychellois watering hole along with the whole stretch of Beau Vallon beach down to ‘Al Mare’ restaurant.
Huge development projects and a complete refurbishment of the Coral Strand were earmarked with much pomp by the Michel administration.
Meanwhile in Moscow, on 18th April 2007 (last year), the investigative department of the Interior Ministry for the Central Federal District conducted a search of the main office of the Guta Group and confiscated documents and computer hard drives. Documents were being burned by the firm’s security staff… With several companies under the “Obyedinennye konditery” umbrella, incorporating Red Front and Red October, Coral Strand and adjacent prime property real estate had its new owner -brokered by the fat cats of the SPPF government. Presented with concessions and incentives, they decided to hit the jackpot and announced a renovation plan for the Coral Strand to add some splendour. A Savoy Hotel by the sea in Seychelles would be the crown jewel of their ‘investment’ portfolio… And what a gold mine this is! With profits in the millions of Euros, the deal is even sweeter (the Guta group’s main activity is candy manufacturing!!).
The much talked about renovation turns out to be a cosmetic farce, with the hotel closing down for one month and reopening 1st of July 08 without any licence, still a construction site and welcoming guests. Despite pressure from the regulating authority, the Russian owners were defiant and a little circus ensured, as the image of our tourism industry takes a further dent. It seems that this one is no pushover like Plantation Club…
“Bez prablem” – the Russian boys use their connections. Since the planning permission for this bogus renovation was discussed and approved at State House, a trip is made on 2nd July to clear the hurdles. No problem! The next day a high powered delegation headed by Minister Dugasse pays a visit to the hotel
This whole saga of the Coral Strand hotel reflects the corrupt and distorted fashion by which business is conducted under the SPPF government. Here we have a bunch of Russians with a dubious background, no tourism or hotel experience and loads of cash, dictating and doing as they please, sending all our country’s laws and regulations into a dustbin. They operate under a new set of rules of concessions and incentives designed to enrich and fatten the already fat cats that are running the show- in the name and on behalf of the Seychellois people. Perhaps Minister Dugasse could explain the reason for his personal involvement in the project and the reason why the ‘renovations’ bypassed all the channels and dealt directly with State House.