Silver Bank Scandal: Ramgoolam Exposes Massive Fraud and 'Mafia-like' Practices
Prime Minister Navin Ramgoolam has condemned a massive fraud and what he described as 'mafia-like' practices in the Silver Bank case.
He made these statements during the Prime Minister's Question Time (PMQT) at the National Assembly in response to a question from MP Raviraj Beechook.
Preliminary investigations suggest that nearly 7.9 billion rupees may have been misappropriated. The Prime Minister also noted that the bank has not submitted its audited accounts for 2022 and 2023 and was unable to name any auditor.
Allegations of favoritism have also surfaced, particularly regarding VIP treatment given to a Gupta associate at the Plaisance Airport. Ramgoolam claims this treatment was granted on the orders of the former Minister of Finance.
He added that in 2021, the Bank of Mauritius, under the leadership of Harvesh Seegolam, approved the acquisition of shares in BanyanTree Bank by the shareholders of Silver Bank Limited. Given that BanyanTree Bank was under conservatorship, the approval for a 75% stake to a single shareholder, Ginni Gupta, who lacks banking experience, appears to be a controversial decision according to him.
The Prime Minister also raised concerns about 7.7 billion rupees in loans linked to Gupta, as well as 18 million transferred directly to his entities. He described this as an 'institutional plot' aimed at siphoning off depositor funds.
Additionally, 3.55 billion rupees of public funds have been invested, with another 907 million at risk, particularly from the Covid-19 Projects Development Fund, National Insurance Co Ltd, Curepipe Municipality, and the Sugar Insurance Fund Board.
According to the Prime Minister, the situation remains critical, with over 8 billion in toxic loans and 7.9 billion suspected to have been misappropriated, while only 209 million has been recovered so far.
Two arrests have been made for money laundering, and an Interpol alert has been issued. The Prime Minister also announced plans to strengthen the legislative framework with the introduction of the AML/CFT/CPF bill to better combat money laundering.
