MIC, Pulse Analytics, & Silver Bank, The Financial “Crime” Speculated

PM Navin Ramgoolam and DPM Paul Bérenger have expressed grave concerns over what they describe as a “crime against the population.” During a press conference on Saturday, December 14, at the Treasury building, Ramgoolam accused former Finance Minister Renganaden Padayachy and former Prime Minister Pravind Jugnauth of committing a “criminal act” against the economy, stating, “They have defaulted public funds.” He confirmed that the investigation into these matters is ongoing.

Ramgoolam alleged that Renganaden Padayachy had established shell companies to secure loans that were ultimately approved through the Mauritius Investment Corporation (MIC), despite these loans initially lacking approval, as they were sanctioned retroactively. “The Central Bank continues to investigate the MIC,” he added.

Concerns Over Pulse Analytics

A significant portion of Ramgoolam’s address focused on Pulse Analytics, a company categorized with a risk level of 5, signifying a very high risk.

This company reportedly received $1 billion (approximately Rs 45 million) from the MIC.

During a prior press conference on December 7, Bank of Mauritius Governor Rama Sithanen remarked that despite the general elections taking place, the transaction was processed swiftly, referring indirectly to Pulse Analytics.

He pointed out that there appeared to be collusion between the Central Bank and the MIC to defraud public funds in this incident.

MIC officials have already filed a police report regarding what they consider a clear-cut case of wrongdoing.

Ramgoolam elaborated on the circumstances surrounding the financing.

He explained that Pulse Analytics had requested a loan from the MIC, which was initially rejected by the institution’s board of directors due to concerns that it was a “very, very high-risk project” that was unlikely to be repaid.

He asserted that pressure was applied to Jitendra Bissessur, the Chief Executive Officer (CEO) of the MIC, to reverse this decision.

“The Governor of the central bank went to the MIC’s office to change that decision. The project returned to the table, and conditions were imposed. None of those conditions were met,” he said.

A significant change occurred on October 28, when the loan was abruptly approved.

Ramgoolam claimed that once the funding was secured, Rs 10.2 million was promptly withdrawn for personal expenses, alleging that the money was fully utilized by the firm’s associates.

He noted that the Central Bank managed to block Rs 34.8 million thanks to a court injunction, but the Rs 10.2 million had already been expended.

The Bank of Mauritius has pledged to recover the misappropriated funds.

Governor Sithanen stated that the Bank has the capability to track all funds that have left the bank and to ascertain how they were used.

“We think we can recover some of this money, but some of it has already left the country,” he indicated.

Investigation into Silver Bank

Additionally, Ramgoolam revisited the scandal involving Silver Bank (formerly Banyan Tree Bank), which is largely owned by Ginny Gupta, the wife of controversial businessman Prateek Gupta, who is facing allegations from Trafigura concerning an alleged $577 million fraud.

Ramgoolam pointed out that over 60% of the loans had been awarded under the control of Gupta, without any collateral being provided.

He remarked, “He didn’t provide any security; they just got loans.”

Sithanen confirmed this during his December 7 press conference, stating, “It’s the husband of the bank’s owner who secured the majority of the approved loans.”

He added that when concerns were raised by the Bank of Mauritius regarding the swift loan approvals increasing the risk of bankruptcy, there were attempts to continue granting loans.

Use of Front Men

Ramgoolam alleged that previous finance ministers had claimed they were halting loan approvals but later exerted pressure to grant loans to certain individuals.

He accused some of using front men to access loans illegitimately.

“There are significant thefts that have occurred in this manner, and while I will not disclose their names at this time, what has transpired is criminal. They have taken the money and misappropriated it,” he lamented.

Moreover, Sithanen echoed these sentiments, stating that the individuals who obtained the loans were not deserving.

He noted that a committee from the former Ministry of Finance had used state funds to inject capital into the bank while being aware of the potential collusion.

While the Ministry of Finance has been able to withdraw a portion of its investments from Silver Bank, approximately Rs 522 million remains invested in the institution.

According to Sithanen, the total loans and advances from the bank amounted to around Rs 8.3 billion, with impairments

Source: Defi Media