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MIC Financial Misconduct: Scrutiny of Transactions in Dubai

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MIC Financial Misconduct: Scrutiny of Transactions in Dubai
Image source: Defi Media

The investigation into financial misconduct at the Mauritius Investment Corporation (MIC) is intensifying, with particular focus on transactions involving Menlo Park Ltd in Dubai. Central to this inquiry are the activities linked to key figures Adam, Seegolam, and Bissessur. Authorities are seeking to uncover any potential pressures or irregularities associated with these dealings.

The Anti-Money Laundering Unit (AMLU) of the Central Criminal Investigation Department (CCID) is intensifying its probe into allegations concerning financial mismanagement related to the assistance provided by the MIC.

Investigators are set to closely analyze the transactions executed by Menlo Park Ltd in Dubai, which received a financial aid package of $1 million (approximately Rs 45 million) from the MIC in 2021, at a time when the country was recovering from the economic impact of the COVID-19 pandemic.

The case has gained momentum following testimonies from high-ranking MIC officials who reported irregularities in the approval processes for loans.

A significant turning point in the investigation was marked by the arrest of Harvesh Seegolam, the former governor of the Bank of Mauritius (BoM), who was charged with “conspiracy to defraud.”

The circumstances surrounding the loan approval process for Stéphane and Queenie Adam, directors of Menlo Park Ltd, are now under rigorous examination.

Investigators are particularly focused on the dynamics between the key players Adam, Seegolam, and Bissessur in this scenario.

Jitendra Bissessur, the former chairman of the MIC, has also been named in connection with the investigation.

There are suspicions regarding possible exertion of pressure at high levels to facilitate the swift approval of the loan.

Established in June 2020 to support financially distressed businesses, the MIC managed a sizable capital of Rs 81 billion, funded by the Bank of Mauritius.

However, investigators are attempting to ascertain whether external directives influenced the expedited approval of Menlo Park Ltd’s application.

Notably, Stéphane and Queenie Adam have claimed that their initial application was rejected but subsequently modified before being accepted.

The investigation is also extending to other notable figures. Former Minister of Finance Renganaden Padayachy is under particular scrutiny.

Although he has not yet been summoned for questioning, authorities suggested he must have been aware of the MIC’s operations.

Investigators are aiming to clarify his role in the authorization of investments made by the BoM through the MIC.

Additionally, the former Deputy Governor of the BoM, Mardayah Kona Yerukunondu, was interviewed by the CCID team on January 9, 2025.

He explained that all applications submitted to the MIC undergo an initial evaluation by an investment committee before receiving final approval from the Board, following thorough verification processes.

After providing his statements, Yerukunondu was allowed to leave.

As the investigation progresses, more hearings are expected in the coming week, with the AMLU gearing up to question additional involved parties to better understand the financial movements and the roles played by various stakeholders.

Furthermore, the Passport and Immigration Office has been notified to prevent any potential attempts by Renganaden Padayachy to leave the country.

Authorities are diligently working to reconstruct the financial flows, aiming to clarify the connections between decisions made by the MIC, any potential directives from higher authorities, and the beneficiaries of these funds.

The financial interactions between the BoM and MIC remain a critical area of concern for investigators.

The CCID is hopeful of swiftly establishing accountability within this intricate case, which exposes controversial practices in the allocation of post-COVID-19 financial assistance.

Source: Defi Media

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