News
Maubank Ltd Paid Over Rs 40 Million to Private Lawyers Since 2016
The handling of legal expenses at Maubank Ltd has come under renewed scrutiny in Parliament, fueling ongoing controversy about this public bank. In response to a question from MP Arvin Babajee, Prime Minister Navin Ramgoolam disclosed that the bank paid a total of Rs 40.9 million in legal fees to 39 private lawyers and law firms, including 15 legal practices, between 2016 and 2024.
Maubank Ltd is a subsidiary of Maubank Holdings Ltd, which is fully owned by the Mauritian government.
The bank was established in January 2016 following the merger of the banking operations of the former Mauritius Post and Cooperative Bank.
Among the major recipients of these legal fees are well-known legal professionals. Several other lawyers and firms received amounts ranging from Rs 25,000 to Rs 1 million.
Controversial Contract with Verde Frontier Solutions
During his statement, the Prime Minister also addressed another contentious issue involving Maubank Holdings Ltd: a contract awarded in 2022 to a consortium including Verde Frontier Solutions Ltd.
This group was appointed as Transaction Advisor for the sale of shares in Maubank Holdings and its subsidiaries.
The consortium included several entities such as GA Company SRL, Gibraltar Advisory, Priscus Finance, and Verde Frontier Solutions.
Dr. Navin Ramgoolam revealed that, although the contract was approved by lawyers Ravi Yerrigadoo and S. Carrim, the sale did not actually go through.
Despite this, the consortium received Rs 17.96 million in fixed fees, plus a success fee clause that was never triggered.
The Prime Minister, Navin Ramgoolam, was particularly critical of Verde Frontier Solutions Ltd, noting that the company is under investigation by the Financial Crimes Commission (FCC).
The investigation concerns allegations that Verde Frontier Solutions obtained public contracts improperly and published false opinion polls favorable to the previous government shortly before the last general elections.
“There was unprecedented generosity in awarding contracts to Verde Frontier Solutions under the MSM government,” Ramgoolam said.
He added that the contract with the consortium was officially canceled on May 12.
List of Major Payments to Maubank Lawyers
- Ravindra Chetty SC Chambers: Rs 6.28 million
- Mardemootoo Solicitors: Rs 5.76 million
- Me Preetam Chuttoo: Rs 4.97 million
- Ghose Chambers: Rs 3.83 million
- Me D.K. Dabeé: Rs 3.72 million
- Dentons (Mauritius) LLP: Rs 3.63 million
- Me Désiré Basset: Rs 1.95 million
- Me Ali Hajee Abdoula: Rs 1.28 million
This disclosure is raising questions about the transparency and oversight of legal expenses and government contracts at Maubank.
Source: l’Express