An Unending Saga
Editorial
The unravelling threads of systemic corruption: mauritius grapples with the mic scandal
The unfolding investigations by the Financial Crimes Commission (FCC) in Mauritius are laying bare a deeply troubling narrative: one of systemic corruption that appears to have permeated the highest echelons of power. At the heart of this burgeoning scandal lies the Mauritius Investment Corporation (MIC), an entity created by the Bank of Mauritius (BOM) under the purview of the then Minister of Finance. What was intended as a lifeline for distressed companies in the wake of the Covid-19 pandemic now stands accused of being a conduit for the plundering of public funds, orchestrated through a network of political influence, cronyism, and blatant conflict of interest.
The FCC is carefully and systematically implementing what resembles an encirclement strategy, progressively tightening the net around individuals suspected of involvement in dishonest deals. With each new revelation, the emerging picture reveals a growing scale of alleged fraud, painting a grim portrait of governance where public trust appears to have been flagrantly abused. The sheer volume of questionable transactions surfacing since the MIC’s inception suggests a deeply embedded culture of corruption, where political pressure seemingly dictated the disbursement of substantial funds to companies with close ties to those in power.
The recent revelations concerning the Maradiva Villas Resort & Spa serve as a stark illustration of the alleged modus operandi. Initially reported as a Rs 650 million loan, internal documents now reveal that the total financial assistance extended to Mauriplage Beach Resort Ltd (now Dhyanavartam Ltd) amounted to a staggering Rs 1.65 billion. This places the luxury hotel among the largest beneficiaries of the MIC. It would now appear that the CEO of MIC was the personal appointee of the former Minister of Finance, and that the same CEO had astounding conflicts of interest as Board member on the receiving side. What makes this particular case troubling is that Maradiva was tottering on the verge of bankruptcy, could not service its huge borrowings at other banks (including the SBM) and had to be repeatedly bailed out. No due diligence seemed to have been done either at SBM or MIC levels and what is even more alarming is the timing of the final disbursement of Rs 350 million, approved by the MIC board in February 2024 – a mere few months before the last general elections.Read More… Become a Subscriber
Mauritius Times ePaper Friday 18 April 2025
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