SBM writes off Rs 14.3 billion in toxic loans over 10 years, Prime Minister vows action
via Le Mauricien6 min read
Prime Minister Navin Ramgoolam revealed that the State Bank of Mauritius SBM wrote off Rs 14.3 billion in toxic loans between 2014 and 2024, averaging Rs 1.3 billion in losses annually. This figure is a tenfold increase compared to the Rs 1.12 billion in losses recorded from 2004 to 2013. The Prime Minister stated that this situation reflects a disregard for basic banking principles and a failure in asset monitoring, risk management, and internal controls, suggesting it was a deliberate act to deplete the bank's assets. He pledged that those responsible would not go unpunished. Among the significant loans mentioned, Rs 9 billion of the total Rs 14.3 billion in toxic loans were attributed to three foreign entities: NMC Healthcare, the Pabari group, and Renish Petrochem FZE, which received loans without sufficient or tangible guarantees. Another notable case was a Rs 1.4 billion loan to Dhyanavartam Ltd, operator of Maradiva Villas Resort & Spa, including Rs 470 million granted in 2024 just before the general elections, despite the credit committee's disapproval. This decision was allegedly imposed by the then-Chief Executive Officer, Premchand Mungur, and is currently under investigation by the FCC. Ramgoolam highlighted that these loans severely impacted SBM Holdings' profits, which plummeted from Rs 2.7 billion in 2013 to a mere Rs 15 million in 2019. He attributed this to the previous government's actions and the central bank's complicity. The Prime Minister assured that in
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This summary was AI-generated from a story originally published by Le Mauricien.
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