PM Denounces Mafia Style Conspiracy as Rs 7.9 Billion Siphoned from Silver Bank

Prime Minister Navin Ramgoolam has launched a scathing attack on the previous administration, alleging a “mafia-style” institutional conspiracy following the collapse of Silver Bank Limited and the suspected siphoning of Rs 7.9 billion into foreign jurisdictions.

In a parliamentary session held on Tuesday, 7 April, the Prime Minister revealed a staggering financial “shipwreck” characterised by systemic fraud, political interference, and the disappearance of public funds.

Investigations have uncovered that of the bank’s Rs 8.3 billion loan portfolio, a massive Rs 8.1 billion is now classified as non-performing, with a mere Rs 209 million recovered to date.

The “Siphoning” of Billions

Addressing questions from MP Raviraj Beechook, Mr Ramgoolam detailed how internal audits discovered approximately Rs 7.7 billion in loans granted to companies linked to Prateek Gupta—a figure central to an international fraud case involving the trading giant Trafigura.

The Prime Minister confirmed that:

• Rs 7.9 billion was siphoned through various entities across multiple jurisdictions.
• Two suspects have been arrested in connection with the fraud.
• An Interpol Red Notice has been sought for Prateek Gupta.

Public Funds at Risk

The collapse has left significant public assets in jeopardy. Of the Rs 3.55 billion originally invested by public bodies, approximately Rs 907 million remained as of 28 February 2026.

This includes Rs 523 million from the Covid-19 Projects Development Fund, alongside holdings from the National Insurance Co. Ltd and the Sugar Insurance Fund Board.

Mr Ramgoolam alleged these deposits were “dictated by interventions from the highest authorities” to artificially bolster the bank’s balance sheet, pointing the finger directly at former Finance Minister Renganaden Padayachy.

“This was a clear scheme of gross mismanagement and deliberate fraud,” the Prime Minister stated, describing the previous government’s handling of the dossier as “mafia style.”

Regulatory Failures and “Shadow” Accounts

The bank, which took over BanyanTree Bank in 2021, reportedly operated without audited accounts for 2022 and 2023.

External auditors allegedly refused to work with the institution due to “grave unfavourable information” regarding Mr Gupta.

The Prime Minister described the 2021 decision to grant a banking licence to Ginni Gupta—Prateek Gupta’s wife—as “scandalous and suspicious,” noting her 75% stake was approved despite a total lack of prior banking experience.

The Road to Receivership

Silver Bank was placed under conservatorship in February 2024 after failing to meet central bank directives on capitalisation and lending.

While the conservator flagged a “conspiracy to defraud” in early 2025, the regime was only recently terminated in favour of appointing a Receiver after no viable buyers could prove the legal origin of their funds by the 30 March 2026 deadline.

The Financial Crimes Commission is currently leading the investigation, with the government vowing to protect the integrity of the Mauritian financial centre amid the ongoing fallout.

Source: Defi Media