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AfricaMoney | September 22, 2017

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Bramer & BAI in huge financial scam as PM indicates Ponzi scheme over Rs 25 bn

Bramer & BAI in huge financial scam as PM indicates Ponzi scheme over Rs 25 bn

The root of this scandal is the presence of a Ponzi scheme for an amount greater than Rs 25 billion, trapping 23,000 people and putting 160,000 policy holders at risk, noted Mauritius’ Prime Minister Anerood Jugnauth. (Image: ION News)

Mauritius’ Prime Minister Anerood Jugnauth took the island economy’s banking sector by storm, indicating that a Ponzi scheme for an amount greater than Rs 25 billion lies at the root of the recent revocation of the licence of local financial services major Bramer Bank.

The Prime Minister held a press conference today to give more details of Bramer Banking Corporation Ltd (BBCL) and British American Insurance Co Ltd (BAI) after the revocation of the BBCL banking licence by the central bank late yesterday.

Prime Minister Anerood Jugnauth highlighted that the BoM took such an action strictly in public interest and that PricewaterhouseCoopers (PwC) was given the responsibility of taking control of BAI.

It was vital that the government intervenes quickly so that the issue did not spill over into the broader economy and put the Mauritian financial system at risk, as per the Prime Minister.

The Financial Services Commission (FSC) has granted PwC the responsibility of controlling the BAI so that the interest of policyholders of the insurance company is preserved, he stressed.

The root of this scandal is the presence of a Ponzi scheme for an amount greater than Rs 25 billion, trapping 23,000 people and putting 160,000 policy holders at risk.

The government cannot provide further details at this stage, noted the Prime Minister, since the matter is sub-judice. However, in order to help customers over their complaints and clarifications, the FSC and BoM have put a help desk for the public in place.

Anerood Jugnauth ended on the note that he is counting on the nation’s collaboration for bringing this scandal to a firm and just close, and assured the public that the Mauritian financial system will remain sound and creditable.

- By Wazna Gunga

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