the Vacoas Popular Multipurpose Cooperatives Society, he will – (a) state if he has received representations…
(No. B/1138) Mr K. Lobine (First Member for La Caverne & Phoenix) asked the Minister of Industry, SME and Cooperatives whether, in regard to the Vacoas Popular Multipurpose Cooperatives Society, he will – (a) state if he has received representations from members thereof for a meeting and, if so, indicate if same was acceded to; (b) for the benefit of the House, obtain information as to where matters stand with regard to reported cases of mismanagement over the years thereat, and (c) state whether he has taken cognizance of the communiqué issued by this Society for the sale of a plot of land at Flic en Flac to the tune of Rs 560 million.
Madam Speaker, the Vacoas Popular Multipurpose Cooperatives Society Ltd was registered in 1977 and operates as a cooperative credit union with 4591 active members. Its core activities include promoting savings, issuing secured loans and undertaking property-related projects. Madam Speaker, I wish to inform the House that the affairs of the society have been managed by a caretaker board for ten years until 13 July 2024 when a Board of Directors was elected democratically. The current board was constituted on 15 July 2024. Regarding part (a) of the question, I wish to inform the House that I have received two separate letters, both highlighting long standing issues with the Vacoas Popular Multipurpose Cooperatives Society. The first and undated letter was received on 28 February 2025. The second, also undated and received on 23 April 2025, was addressed to the Ag. Director General of the Financial Crimes Commission and copied to the hon. Prime Minister and myself, contained serious and disturbing allegations about the society’s governance. Given
56 the gravity of these claims, I immediately instructed my officers to initiate an enquiry following which, a comprehensive report was produced and submitted to the relevant authorities. Concerning part (b) of the question, I am informed that several cases of alleged mismanagement at the society have been referred to the police whilst others are presently pending before courts down the years. Madam Speaker, as regard to part (c), I wish to inform the House that I have taken cognizance of the communiqué issued on 19 November 2025 regarding the proposed R560 million sales of 27 arpents 15 perches of land at Flic en Flac. The communiqué was signed by the Manager and the Treasurer whereas such a decision must be approved and issued by the board through duly authorised office bearers as required under the society’s rule. The process was therefore irregular from the outset. My Ministry had already issued directive before the communiqué on 18 November and a second directive on 25 November this year instructing the society to halt the process and reminding it that any disposal of immovable property requires proper board approval/member’s authorisation at a general meeting and more importantly, a transparent and competitive bidding exercise, which was not followed. We further reiterated the society’s AML CFTs obligations including full customer due diligence. As the society initially failed to comply, all eight of its bank accounts across five banks were placed under stricter transaction control as provided by the law with any payment now subject to prior vetting by my officers. Madam Speaker, on Saturday 29 November 2025, the society formally informed my Ministry that the proposed sale has been halted and it would fully adhere to my Ministry’s directives including conducting an open bidding exercise and submitting the selected bidder to a special general meeting for approval. The matter is currently being followed up by my Ministry.
Hon. Lobine, you are alright? Now, hon. Second Member for Vieux Grand Port & Rose Belle!
57 BOIS DES AMOURETTES-QUATRE SŒURS COASTAL ROAD – PUBLIC BEACH PROCLAMATION