Silver Bank Scandal: Employees’ Complicity in Fraudulent Loans

A shocking investigation has uncovered a massive loan scandal at Silver Bank, a small bank in Mauritius, with employees allegedly involved in perpetrating fraud.

The scandal has left depositors fuming, with many demanding answers from the bank’s management and regulators.

According to reports, the bank had granted loans worth Rs 8 billion, a record in Mauritius, despite having only around Rs 4 billion in deposits.

Questions raised about the bank’s liquidity ratio and how it managed to provide such large loans.

The investigation has revealed that almost all of the foreign borrowers of these non-repaid loans were involved in the metal trading industry, a sector that is supposed to be diversified by the Bank of Mauritius (BoM).

Moreover, the borrowers were allegedly using shell companies to hide their identities, with some employees of Silver Bank involved in creating false invoices.

One Indian and a Mauritian employee, whose names have been revealed, are suspected of being involved in the fraud.

The Indian employee allegedly left the country without facing any consequences, while the Mauritian employee continues to work at Silver Bank, closely collaborating with Grant Thornton, the bank’s conservator.

The investigation has also raised questions about the role of Arvindsingh Gokhool, who is allegedly more interested in other projects than managing the bank.

The bank’s management has disappeared, leaving depositors frustrated and worried.

Depositors are particularly concerned about the fate of their capital and the lack of information from the bank.

Many have signed Deposit Retention Agreements, which prevent them from withdrawing their funds until October 2024.

They are also unsure about whether they have received interest payments on their deposits.

The situation has become so dire that some depositors have stopped paying back their loans or overdrafts.

A local property developer, who had borrowed a large sum from Silver Bank to invest in Croatia, has stopped repaying his loan.

The National Insurance Company, which had deposited Rs 250 million in Silver Bank, is also affected.

The BoM’s silence on the matter has only added to the frustration. The regulator had received reports on Silver Bank’s questionable practices but failed to take action.

The lack of transparency and accountability has left depositors feeling abandoned and helpless.

The Silver Bank scandal is a stark reminder of the need for greater regulation and oversight in the financial sector.

Until then, depositors will continue to suffer the consequences of lax oversight and poor governance.

Source: l’Express