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.
Mauritius has initiated the first phase of the Tax Inspectors Without Borders – Criminal Investigation TIWB-CI program in Plaine Magnien. This international collaboration aims to enhance the capabilities of Mauritian authorities in detecting, investigating, and prosecuting tax offenses through specialized technical assistance. The initial phase, running from July 20 to 24, will allow the MRA, the Registrar of Companies, the Ministry of Industry, SMEs and Cooperatives, and the Bank of Mauritius to assess their current mechanisms for combating tax crimes. This assessment will help identify any shortcomings and strengthen their investigative frameworks. The Mauritius Revenue Authority MRA benefits from this capacity-building program, which is jointly implemented by the Organisation for Economic Co-operation and Development OECD, the United Nations Development Programme UNDP, the African Tax Administration Forum ATAF, and the World Bank.
Mauritius' trade deficit significantly widened in May, reaching Rs 22.3 billion compared to Rs 16.5 billion in May 2025. This annual deterioration is primarily due to a 19.7% increase in imports, which rose from Rs 26.4 billion in May 2025 to Rs 31.6 billion in May 2026. Concurrently, total exports decreased by 6.2%, falling from Rs 9.895 billion to Rs 9.282 billion. South Africa remains the top destination for Mauritian exports, accounting for 13.6% of the total, followed by the United States 10.8%, the United Kingdom 10.1%, France 10.1%, Madagascar 8.5%, and Spain 7.5%. For imports, China leads with 19.1%, followed by the Sultanate of Oman 14%, Belgium 9.6%, South Africa 6.6%, India 6.5%, and Singapore 6.5%.
Australia has substantially increased visa fees, transforming visas from administrative costs into instruments of migration policy and budgetary revenue. The Resident Return Visa saw a 201% increase, from 490 to 1,475 Australian dollars, while the Bridging Visa B rose by 203%, from 190 to 575 dollars. The temporary graduate visa, which cost 2,300 dollars in early 2026, doubled to 4,600 dollars in March, and further increased to 5,750 dollars in July, marking a 150% rise in six months. The student visa increased from 710 dollars in 2024 to 2,500 dollars in July 2026, a cumulative 252% increase in two years. These fees are generally non-refundable, meaning applicants pay for their applications to be examined, not for visa approval. The Australian Department of Home Affairs website confirms that fees can change and the applicable amount is that in effect at the time of application receipt. Officially, Canberra aims to manage migration flows, limit abuses, and make the international education system more sustainable. However, the scale of the increases far exceeds inflation and administrative processing costs, effectively creating a targeted tax on migrants. The measure is expected to generate approximately 764 million Australian dollars during the financial year, despite the international education sector contributing around 53.6 billion dollars to the Australian economy the previous year. This policy risks deterring students from Africa, South Asia, and small island states like