The objective of the Mauritius Investment Corporation (MIC) was to alleviate the impact of COVID-19 on businesses, preserve financial stability, and restore confidence among investors. But along the way, the objectives changed, according to economist Vinaye Ancharaz.
The latter argued that using the Bank of Mauritius reserves could pose a significant danger. “By doing so, we weaken the reserve, which plays a crucial role in stabilising the exchange rate,” he pointed out.
Ancharaz noted that the MIC’s mission has now shifted towards investing in strategic areas. Economist Takesh Luckho added that the controversies surrounding the MIC are not only about financing. “There have been several controversies since its creation, including the purchase of the Smart City,” he said.
Another area discussed was the MIC’s profits. The two economists revealed that Rs1.9 billion of the Rs2.3 billion came from re-evaluating land (Omnicane Smart City). “We also need to question how the land was appraised by 55% in one year,” they queried.
Roshi Bhadain, the leader of the Reform Party, claimed that the Bank of Mauritius can no longer defend the rupee. “Mauritians must understand that the decisions made directly affect their pockets,” he stressed.
Capital Media editor-in-chief Rajen Valayden revisited his complaint filed with the ICAC in October. He demanded an investigation into the allocation of Rs50 billion to various private companies. “There was a criminal act in the allocation of these funds,” he claimed.
Former Chief Reserves Management Division of the BoM and current AI director in the USA, Sameer Sharma, stated that the MIC’s report is “outdated.”
“For a subsidiary of a financial regulator, being a year behind on an annual report is unacceptable. Much has changed since,” he said.
Source: Defi Media
