Silver Bank: Navin Ramgoolam Accuses the Former Government of 'Incompetence'

Prime Minister Navin Ramgoolam condemned the management of Silver Bank by the former government during a session in the National Assembly, labeling it as 'incompetent'. He criticized risky public deposits, high fees for the conservator, and minimal recovery of toxic loans.

"The decision to invest such a large amount in a questionable bank with no track record is pure incompetence that borders on criminal malpractice by the previous administration," Ramgoolam stated in the Assembly.

On Tuesday, he responded to a question from MP Roshan Jhummun regarding the conservator fees of Silver Bank Ltd and the recovery of toxic debts since February 2024. The Prime Minister harshly criticized the handling of Silver Bank Ltd by the former government, noting that the bank was placed under conservatorship by the Bank of Mauritius on February 13, 2024.

He recalled that Rs 3.55 billion had been deposited by entities linked to the previous government "to create a misleading improvement in the bank's balance sheet." These deposits were made even as the then-government had issued a circular advising public entities to invest their cash surpluses in much safer treasury bonds, as the Prime Minister pointed out.

Rs 900 Million Still Owed

To date, over Rs 900 million is still owed to these governmental entities, the Prime Minister clarified.

Regarding the conservator fees, the Bank of Mauritius appointed Arvindsingh Gokhool on February 13, 2024, under Section 65 of the Banking Act 2004. An initial monthly fee of Rs 3.5 million was set, paid to Grant Thornton (Advisory Services) Ltd, where Gokhool was employed at that time. This amount has been renegotiated several times: Rs 2.5 million from November 16, 2024; Rs 1.5 million from December 18, 2024; and Rs 300,000 from February 1, 2025, due to significant delays in finalizing the proposed sale of the bank.

From February 13, 2024, to March 2025, Grant Thornton received Rs 39.7 million for the Silver Bank case. After Gokhool resigned from the firm on March 31, 2025, the reduced fee of Rs 300,000 per month has since been paid to Vedaanta A&A Services Ltd, a company of which he is the sole shareholder and director. An amount of Rs 2.3 million has been paid to this company from April 2025 to date. No other firm or individual has performed the conservator role since February 2024, Ramgoolam stated.

Only 2.5% of Toxic Loans Recovered

Regarding debt recovery, the Prime Minister indicated that out of a total loan portfolio of Rs 8.2 billion, only Rs 206.3 million has been recovered from February 2024 to November 27, 2025, representing just 2.5%. "These figures indicate the toxicity of Silver Bank's loan portfolio. The toxicity of this portfolio has been directly exacerbated by the influence of the previous government," concluded Navin Ramgoolam.