Rs 300 Million “Under-the-Table” Payments, MIC Board Members Under Investigation

The Mauritius Investment Corporation (MIC) finds itself at the centre of a troubling scandal, as the Financial Crimes Commission (FCC) deepens its investigation into alleged misappropriation involving a significant sum of Rs 300 million. Last Friday 21st March, three former board members—Ragen Swaminathan, Swadicq Nuthay, and Mardayah Kona Yerukunondu—were summoned for questioning, amid rising concerns regarding a loan connected to Menlo Park.

The inquiry primarily focused on the acquisition of shares in Eastcoast Hotel Investment Ltd, which amounted to an astonishing €48 million (around Rs 2.4 billion).

Initially, the MIC’s Investment Committee had put forward a proposal for Rs 2.1 billion.

However, the FCC is suspecting that an additional Rs 300 million may have been covertly included to facilitate “under-the-table” payments to various individuals involved in securing financial backing for this transaction, which was presented back in February 2024.

In this developing situation, the FCC is meticulously scrutinising the roles of MIC board members in the controversial funding application.

The unexpected increase in the amount by Rs 300 million during a subsequent request has raised significant alarms.

On March 21, the FCC conducted in-depth interviews with Nuthay, Yerukunondu, and Swaminathan regarding the events leading to the board’s approval of 1,596 shares in Eastcoast Hotel Investment Ltd.

They faced intense questioning about the approval process that culminated in the board agreeing to the financial request on February 5, 2024.

During the sessions, the former board members discussed the key responsibilities of the Investment Committee, charged with assessing proposals before they reach the board.

Investigators highlighted serious deficiencies in due diligence practices, particularly the lack of supplementary evaluations, which are typically required for such matters.

While the initial assessment of the Rs 2.1 billion request deemed all presenting documents compliant, inconsistencies became evident during the examination of the revised amount of Rs 2.4 billion, prompting further investigation by the FCC.

The trio—Yerukunondu, Ragen, and Nuthay—must now furnish detailed explanations regarding these irregularities.

Their reasoning and respective contributions within the board during this process will come under thorough scrutiny by the FCC.

Investigators are eager to determine whether the contentious Rs 300 million addition was a deliberate move intended to benefit several individuals involved in the approval process unethically.

The sudden rise in funding during the second request has raised suspicions, especially given that no significant changes were noted in the corresponding documentation.

Additionally, it has emerged that Jitendra Bissessur, the former CEO of MIC, is already facing questions due to his involvement in a separate investigation concerning loans associated with Menlo Park/Pulse Analytics.

As this web of intrigue continues to unfold, the repercussions of this case loom large over the MIC and its operational integrity under previous regime.

Source: Defi Media