Silver Bank Scandal: Rs 7Billion Fraud Sparks Citizen Complaint, Probe Demanded

Individual depositors, both Mauritian and foreign, have filed a formal complaint with the Financial Crimes Commission (FCC) regarding the Silver Bank scandal. They are calling for a thorough investigation into the actions of former Bank of Mauritius Governor Harvesh Seegoolam and former Finance Minister Renganaden Padayachy, accusing them of facilitating a massive banking fraud that led to the bank’s collapse. The complaint also implicates several senior Silver Bank officials.

Key figures mentioned include:

• Rajiv Ramacharitar, who allegedly signed most of the loans and is still part of the staff.
• Sheika Koodooruth, former Senior Manager of Operations, suspected of forging a Bank of Mauritius official’s signature.
• Georgian CEO Vasil Reichvilli, who left the country two weeks after the bank was placed under administration without any travel restrictions.

Depositors are questioning why these individuals have not been interrogated or prohibited from leaving the country.

For a year, agents from the Bank of Mauritius were stationed at Silver Bank to review transactions, yet no preventive measures were taken, and any surveillance reports remain undisclosed.

Since its establishment in 2021, Silver Bank has failed to submit its annual financial statements, violating the law without any response from the Financial Services Commission (FSC) or the Ministry of Finance. This lack of oversight is deemed unacceptable and illegal.

Call for Justice and Transparency

The depositors are urging the FCC to broaden its investigation to include:

• Suspicious or fictitious companies that benefited from the bank.
• Internal complicity and serious regulatory failures.
• The source and fate of Rs 3.55 billion of public funds invested in Silver Bank.

They also want the FCC to question former executives still residing in Mauritius, such as Tanuja Nair, former Deputy CEO (who resigned in January 2024), and Gowree Roopnah Dosoruth, Head of Compliance.

The complainants emphasized that the Mauritian public deserves to know the truth, comparing the scandal’s magnitude to the BAI case.

They hope this citizen complaint will break the silence and initiate necessary legal actions against those responsible for one of the largest banking frauds in Mauritian history.

Rapid Disbursement of Questionable Loans

In their complaint, the depositors referenced alarming findings from Silver Bank’s conservator, Arvind Gokhool, released in February 2024.

The report revealed Rs 7 billion in toxic loans granted to 33 foreign clients across 11 countries, often through newly formed companies.

Notably, 44 out of 68 loans were approved in less than 30 days, with some companies receiving large sums on the same day they were registered.

These funds were quickly transferred abroad, evading traceability.

Additionally, 18 Mauritian clients received Rs 900 million in loans deemed unrecoverable, while Rs 1.4 billion lent to nine local entities was transferred to foreign accounts.

The identities of these entities remain confidential, despite depositors’ demands for transparency.

Political Interference Suspected

Whistleblowers allege possible political interference, claiming the Bank of Mauritius was aware of the alarming loan disbursement rates but took no action.

They suggest that the former governor and the Ministry of Finance intervened to artificially sustain loan approvals despite internal warnings.

There are strong suspicions of kickbacks, money laundering, and institutional complicity.

This case presents a significant challenge for the new Financial Crimes Commission.

Its ability to act independently, summon former leaders, and shed light on potential abuses, banking fraud, state complicity, and money laundering will be crucial for its future credibility.

More names may emerge in the coming weeks, but for now, the victims are seeking answers and justice.

Lives Disrupted, Savings Lost

Behind the numbers are real people: teachers, retirees, small business owners, and established professionals, both Mauritian and foreign, who trusted Silver Bank.

Some invested their life savings, while others managed their business cash flow through the bank.

Since the administration began, access to their funds has been blocked, causing ongoing distress.

Many are struggling to pay rent, some have had to suspend their businesses, and others have mortgaged their homes to survive.

“We hear talk of audits and governance, but we have lost our future. Our children won’t go to university. Our dreams have gone up in smoke,” they lamented.

They are now demanding justice—not just reports, but a genuine investigation, sanctions, and hope for recovery.

Source: Le Mauricien