KEY POINTS
- Madagascar account freeze has blocked dozens of Sodiat-linked accounts.
- Ravatomanga seeks supervised access for wages and suppliers.
- Courts must weigh enforcement against economic disruption.
Businessman Maminiaina Ravatomanga has asked Madagascar’s anti-corruption courts to soften the impact of a sweeping bank-account freeze affecting companies tied to his Sodiat group. His lawyers say the measure has stalled salaries, supplier payments and daily operations while investigators continue to build their case.
Ravatomanga, a multimillionaire entrepreneur with interests in multiple sectors, faces scrutiny in an investigation officials say involves suspected money laundering. Through his legal team, he is not requesting a complete reversal of the account freeze. Instead, he asks judges to permit limited, court-supervised measures that allow essential payments while the proceedings continue.
Businesses struggle under strict freeze
At the Mamory-Ivato courthouse, Ravatomanga’s lawyer, Victorine Ravonjiarivelo, said asset freezes are appropriate when wrongdoing is proven. She emphasized that the current freeze is precautionary and should not cripple businesses that employ staff or meet contractual obligations.
According to the defense, dozens of accounts linked to Sodiat-affiliated companies have been blocked. Several billion ariary are now inaccessible, leaving firms unable to pay wages on schedule or settle routine expenses. Ravonjiarivelo said the restrictions have strained supplier relationships and raised the risk of work stoppages and job losses.
The account freeze was ordered by the asset seizure and confiscation chamber of Madagascar’s Anti-Corruption Hub in Antananarivo, a specialized judicial unit that handles financial crime cases. Authorities have publicly framed the file as a money-laundering investigation. Ravatomanga is also facing related judicial proceedings in Mauritius, giving the dispute an international dimension.
Madagascar’s Agency for Recovery of Illicit Assets has said the court action led to the freezing of nearly 100 accounts. The agency added that large sums in local currency and foreign denominations were restrained, with part of the funds transferred into an escrow account pending the outcome of the case.
Courts weigh economic and legal impact
Ravatomanga’s legal team argues that company accounts should not automatically be treated as personal assets because of his association with the firms. The lawyers say each business has its own legal status, employees and commercial commitments. A blanket freeze, they argue, risks penalizing staff and partners who are not accused of any offense.
In court filings, the defense is seeking a controlled framework that would keep the companies operating. The proposal includes authorization to process payroll, pay critical suppliers and cover core operating costs under judicial oversight and reporting requirements.
The case tests how Madagascar balances aggressive asset-tracing in corruption and financial crime probes with the economic impact on large businesses. For the courts, the challenge is maintaining investigative integrity while minimizing harm to businesses and workers involved in the process.
