MauBank Ltd: Rs 17.9 Million Paid for a Failed Sale

The government had planned to sell the controversy-ridden MauBank Ltd (ex-Bramer Bank). In 2022, a consortium was appointed to handle the transaction, including Verde Frontier Solutions Ltd. This firm is known to have close ties to former Finance Minister Renganaden Padayachy. Despite the appointment, the sale did not go through, but the consortium received Rs 17.9 million.

In response to a parliamentary question by MP Nitish Beejan, Prime Minister Navin Ramgoolam explained details about the attempted sale and highlighted alleged irregularities and an ongoing investigation.

On May 30, 2022, MauBank Holdings Ltd appointed a consortium made up of Gibraltar Advisory, Priscus Finance, and Verde Frontier Solutions Ltd as transaction advisors for selling its shares in subsidiaries.

The contract, reviewed by lawyers including former Attorney General Ravi Yerrigadoo, stated that the advisors’ duties included selecting qualified bidders, conducting due diligence on the preferred buyer, preparing the sale agreement, overseeing the transaction’s completion, and managing fund transfers.

Payment despite the failed sale

According to the contract, the consortium was entitled to a fixed fee plus a success bonus. Although the sale was never completed, the consortium received Rs 17,967,436 as a fixed payment.

Prime Minister Ramgoolam criticized this as an unprecedented act of generosity, especially favoring Verde Frontier Solutions Ltd under the previous administration.

Currently, Verde Frontier Solutions Ltd is under investigation by the Financial Crimes Commission for suspected irregularities in securing contracts with several public entities.

Ramgoolam also revealed that the agreement with the consortium was terminated on May 12, 2025.

Source: Defi Media