Allegations of Collusion Between BOM & MIC in Public Funds Diversion

In his inaugural press conference as the Governor of the Bank of Mauritius, Rama Sithanen addressed the ongoing concerns surrounding the Mauritius Investment Corporation (MIC). He highlighted that approximately ten companies that received financial assistance from the MIC, amounting to between Rs 3.6 billion and Rs 3.7 billion, are classified as having a high to very high level of risk.

Disturbingly, he revealed that one company received Rs 45 million (approximately $1 million) despite opposition from the board of directors.

Sithanen emphasized the urgent need for new institutional arrangements to recover the funds allocated to the MIC.

He arranged the press conference to dispel various circulating rumors regarding the Corporation.

“Some of these rumors are true, some are false, and some lie somewhere in between,” he stated during the event on Saturday, December 7.

He acknowledged the potential impact of these allegations on systemic companies, highlighting that many of them are listed on the Mauritius Stock Exchange and play a crucial role in the national economy, with foreign investors involved as well.

The objectives of the press conference were not only to clarify misconceptions but also to reassure the public and provide stability for companies that adhere to their contractual obligations with the MIC.

“I have a responsibility to maintain the confidentiality of all MIC operations, guided by principles of professionalism,” Sithanen noted.

However, he acknowledged that, as the Governor of the Bank of Mauritius, they hold considerable power yet also face stringent confidentiality requirements.

He emphasized that the banking system relies on confidentiality, except in circumstances warranting transparency.

In conclusion, Sithanen reiterated the seriousness of the situation concerning the high-risk companies that have benefited from MIC’s financial support, underscoring the necessity for vigilance and appropriate intervention to safeguard public funds.

Source: Defi Media