Mauritius PM finds solution to compensate BAI’s Super Cash Back Gold policyholders
The Bramer Banking Corporation Ltd has been taken over by the National Commercial Bank, the BAI is now in the hands of the National Insurance Company and finally, a solution has just been announced by the Mauritian PM for BAI’s Super Cash Back Gold insurance policyholders, bringing a greater degree of closure to the Ponzi Scheme that hit the island economy recently.(Image: )
Uncertainty continues to plague the Mauritian financial services sector following the recent financial fraud in excess of Rs 25 billion that hit the country involving the erstwhile well-entrenched BAI Group, where some company employees are still anxious about their jobs.
The National Commercial Bank, which took over the operations of the Bramer Banking Corporation Ltd after the licence revocation of the latter by the central bank, has already become operational, and is now providing internet banking services as well.
The BAI insurance segment was taken over by the National Insurance Company, whereby a solution wasstill not communicated to the Super Cash Back Gold (SCBG) policyholders until 24 April 2015 when a press conference was held by Prime Minister Aneerod Jugnauth.
The prime minister announced a solution for the 14,570 policy holders of the SCBG insurance policy, saying that by latest 15 May 2015, all those who have invested less than Rs 500,000 can get back their capital without interest. This accounts for around 8,000 policy holders out of the 14,570 while those having placed more than Rs 500,000 will be refunded Rs 500,000 at the latest in June.
The rest of their capital will being converted into obligations to be paid every year. It may be noted that this solution arrived at by the State will require amendments to existing laws, the creation of a National Property Fund and the appointment of a special administrator for the properties of the Dawood Rawat group in Mauritius as well as abroad.
The government will have to pay out a total of Rs 2.5 billion to the first category of identified investors, and Rs 3.9 billion for the second —making it a total of Rs 6.4 billion before the expiry of fixed deadlines.
It is the transfers of the assets of BAI and Bramer towards National Insurance Company and National Commercial Bank respectively which will allow these refunds, as specified by Prime Minister Aneerod Jugnauth.
Accordingly, the administrator Sattar Hajee Abdoula highlighted that his work is in the framework of law and he also positively views the new legislations imposed by the government as long as it is the interest of the stakeholders.
However, the jobs of BAI employees are not guaranteed, while for the ex-Bramer Banking Corporation Ltd, the employees have no reason to worry.
The financial scandal also implicated Courts Mauritius, Iframac and Apollo Bramwell hospital, where investors have shown interest recently but nothing has been concluded till date, and employees are complaining of non-receipt of end-of-month salaries.
On the other side, Sattar Hajee Abdoula contested against the motion of freezing the assets of certain companies belonging to the BAI Group by way of a restraining order, whereby a decision will be taken in court today.
On the other side, this financial scandal also concerns shareholders of Britam, the Nairobi Securities Exchange-listed firm, who have endured deep anxiety this month following claims that Dawood Rawat, the single-largest shareholder, had been indicted for running a Ponzi scheme, which could have far-reaching ramifications for their company. It may be noted that Dawood Rawat holds over a 23% stake in Britam, however through the National Insurance Company, it is the Mauritius government that will hold these shares, and so there would be no reason for panic in Kenya.