Silver Bank Collapse: Recovery of Rs 907 Million Public Funds “Extremely Unlikely”

Authorities have admitted that the recovery of approximately Rs 907 million in public taxpayer funds is now “extremely difficult” following the collapse of Silver Bank, which was placed into receivership on 30 March 2026.

The grim outlook was revealed in a written parliamentary response from Prime Minister Navin Ramgoolam.

The Prime Minister detailed a staggering financial deficit, describing the bank’s history as a “classic case of institutional conspiracy” designed to siphon depositor money into international jurisdictions.

Exposure of Public Bodies

According to data from the Bank of Mauritius, the Rs 907 million exposure as of February 2026 is spread across several vital public and para-public institutions:

• COVID-19 Projects Development Fund: Rs 523 million
• National Insurance Co. Ltd: Rs 158 million
• NIC General Insurance Co. Ltd: Rs 132 million
• Municipality of Curepipe: Rs 58 million
• Sugar Insurance Fund Board: Rs 36 million

A Portfolio of “Toxic Debt”

The likelihood of these organisations reclaiming their deposits is hindered by a massive portfolio of non-performing loans.

As early as March 2024, reports indicated that Rs 8.1 billion of the bank’s Rs 8.3 billion total loan book was classified as doubtful.

To date, recovery efforts have yielded just Rs 209 million—less than 3% of the identified debts.

“Scandalous” Governance and Siphoning

The Prime Minister’s statement painted a damning portrait of the bank’s management. In 2021, a 75% majority stake was granted to Ginni Gupta, wife of Prateek Gupta.

Mr Ramgoolam labelled the transaction “scandalous,” noting the shares were handed to an individual with zero banking experience.

Internal audits have since uncovered that approximately Rs 7.7 billion was funneled to companies linked to Prateek Gupta.

Total estimated siphoned funds reach Rs 7.9 billion, dispersed across multiple foreign jurisdictions.

Regulatory Failure and Legal Action

The bank reportedly operated without audited accounts for 2022 and 2023, as external auditors refused to engage following “serious adverse information” regarding Mr Gupta’s involvement in the Trafigura scandal.

Despite warnings and recapitalisation orders from the Bank of Mauritius, Silver Bank leadership allegedly “completely ignored” regulatory instructions.

The Prime Minister noted that it was only following a change in government in January 2025 that a formal police statement regarding the suspected conspiracy was filed.

While international legal assistance and Interpol have been engaged to trace the missing billions, the vast dispersion of assets suggests the Mauritian public faces a near-total loss on its nearly billion-rupee investment.

Source: Defi Media