Public Funds in Silver Bank Accounts: Rs 907 Million 'Extremely Difficult' to Recover

Following revelations by Navin Ramgoolam, the recovery of public deposits now seems compromised. With international siphoning and toxic debts at play, authorities admit that recovery will be 'extremely difficult.'

Nearly Rs 907 million of public funds remain exposed in the accounts of Silver Bank, which was placed under receivership on March 30, 2026. The prospects for recovery appear very limited given the scale of toxic debts. This was noted in a written response from Prime Minister Navin Ramgoolam recently submitted to Parliament, in response to a question from Joanna Bérenger, complementing information already provided on April 7. Sources close to the file inform Le Défi Quotidien that recovering this money will be 'extremely difficult.'

According to data from the Bank of Mauritius, deposits from public and semi-public entities amounted to approximately Rs 907 million as of February 28, 2026. Specifically, Rs 523 million came from the COVID-19 Projects Development Fund, Rs 158 million from the National Insurance Co. Ltd, Rs 132 million from NIC General Insurance Co. Ltd, Rs 58 million from the Curepipe municipality, and Rs 36 million from the Sugar Insurance Fund Board.

This exposure comes amid a severely degraded financial context. By March 2024, the first report from the conservator indicated non-performing loans reaching 'approximately Rs 8.1 billion out of a total portfolio of Rs 8.3 billion.' In other words, nearly all credits extended by the bank were considered questionable.

Two years later, the amounts recovered remain minimal. 'To date, only a relatively small amount of approximately Rs 209 million has been recovered,' specifies the parliamentary response, which includes Rs 47 million from a non-resident client and Rs 162 million from local borrowers. This recovery level, less than 3% of identified debts, suggests massive losses, including for the public funds involved.

In his April 7 response, the Prime Minister had already painted a grim picture of the situation. He particularly highlighted the absence of audited accounts for 2022 and 2023, as Silver Bank had been 'unable to appoint an external auditor,' with auditors refusing 'in light of serious adverse information regarding Prateek Gupta in the Trafigura case.'

The head of government also condemned the conditions under which a majority stake in the bank was granted in 2021: '75% of the shares to a person with no banking experience [...] it was nothing short of a scandalous and highly suspect transaction,' referring to Ginni Gupta, the main shareholder and wife of Prateek Gupta. On June 11, 2021, the Board of the Bank of Mauritius had approved the acquisition of shares in BanyanTree Bank by Silver Bank's shareholders.

Financial Flows Under Close Surveillance

Beyond governance issues, revelations concerning financial flows exacerbate uncertainties regarding recovery chances. An internal audit revealed loans of around Rs 7.7 billion granted to companies linked to Prateek Gupta, as well as fund transfers to associated entities. The Prime Minister mentioned 'a classic case of institutional conspiracy at the highest level [...] to siphon off depositor funds.'

Ongoing investigations confirm the extent of the damage. According to the provided information, approximately Rs 7.9 billion may have been 'siphoned off and transferred to several entities in different jurisdictions.' International procedures have been initiated, including through Interpol and judicial assistance requests with various countries.

In this context, the decision by the Bank of Mauritius to end the conservatorship period and appoint a receiver marks a turning point. It officially acknowledges the failure of recovery attempts, despite prolonged discussions with potential investors between 2024 and 2026.

The Prime Minister also emphasizes that Silver Bank 'completely ignored the instructions of the Bank of Mauritius,' despite warning letters, recapitalization requirements, and lending restrictions. Furthermore, he recalls that 'only after a change of government' in January 2025 was a declaration made to the police regarding a possible conspiracy.

The gap between the committed amounts, questionable debts, and the low sums recovered now fuels concerns about the fate of Rs 907 million in public funds. Given the available figures and the international dispersion of the funds, their recovery appears highly uncertain at this stage.