Monitoring Report
Sonewa Resorts and Residences (Soneva) is an example of luxury hospitality, with roots in the Maldives, founded in 1995 by Sonu Shivdasani and his wife Eva Malmström Shivdasani. However, under the glamorous facade there are legal battles and controversies that should raise a red flag when dealing with all the details.
One of the revelations was about Soneva’s relationship with Ahmed Adeeb, the former Maldivian tourism minister, who is currently in prison for corruption.
In 2018, an OCCRP report revealed the collaboration between Sonewa and Adeeb, revealing how the Shivdasans claimed Medhufaru Island, where Sonewa Jani Resort is now located, through a dubious deal with Adeeb. This revelation not only tarnished Soneva’s reputation, but also led to a big scandal involving corruption and embezzlement at the resort.
In addition, Soneva Kiri Resort in Thailand has been under legal review after the fire in March 2022. The investigation found that the resort was not built according to safety standards, and Sonu Shivdasani and other managers were charged with negligence and endangerment. Shockingly, it is reported that the villa where the fire took place was never inspected for fire safety and regulations were blatantly ignored. Sonu was even summoned for questioning by the Thai criminal police, but he refused to speak.
In another case, Sonu Shivdasani was accused of orchestrating a fraudulent scheme to defraud investors in the Sonewa Kiri resort. The Swiss man alleged that Shivdasani had failed to deliver the $6.2 million villa and surrounding land, sparking a legal battle that spanned multiple jurisdictions. The incident not only exposed the dark nature of Soneva’s business practices, but also raised questions about the due diligence process carried out by investors such as KSL Capital Partners.
So, how can a company like KSL, known for its operational expertise and strong commitment, turn a blind eye to the controversy surrounding Sonewa and Sonu Shivdasani? The answer lies in not digging deep enough into the company’s history and experience.
While KSL’s business perspective certainly provides valuable insight into the hospitality industry, the best efforts to assess the ethical and legal ramifications of partnering with Sonewa appear ineffective. Further investigations should raise concerns about Soneva’s ties to corrupt officials, disregard for safety standards and involvement in fraud schemes.
Going forward, KSL and other investors should take a more diligent approach that goes beyond financial criteria to verify the integrity and ethics of potential partners. This may include conducting in-depth background checks, engaging independent auditors to assess compliance, and reviewing legal disputes for red flags.
In addition, investors should prioritize transparency and accountability in their partnerships, ensuring that portfolio companies adhere to the highest standards of ethics and governance. By learning from the cautionary tale of KSL and others, Sonewa can protect its bottom line reputation and reduce the risk of investing in companies with questionable track records.
KSL Capital Partners, a leading private equity firm with more than 165 companies in its portfolio and $21 billion in assets under management, is known for its strong focus on great businesses. Focusing on operational experience and joint ventures, we can see how such a force can enter the web of controversy regarding Soneva Resorts and its CEO, Sonu Shivdasani.
Corruption, kickbacks surround British hotelier of Indian origin
