Madam Speaker, the then Minister of Finance approved the investments of Rs3 billion in fixed deposits at Silver Bank Limited despite the fact that they were known to have a dubious management. These investments were made on three occasions – (i) Rs500 million in April 2022; (ii) Rs500 million in August 2022, and (iii) Rs2 billion in September 2022. All the investments were made in fixed deposits at Silver Bank Limited on the condition that they can be withdrawn at any time, without penalty, after providing one-week notice to the bank. Madam Speaker, out of the Rs3 billion invested at Silver Bank Limited, the COVID-19 Projects Development Fund has withdrawn Rs2.5 billion on different occasions. First, Rs500 million were withdrawn on 17 February 2023 to pay 20% advance payment to contractors for the implementation of Social Housing Project. Second, Rs500 million were withdrawn on 07 March 2023 to meet urgent commitments associated with the implementation of the Social Housing Project. In other words, Rs1 billion already. Third, on 09 March 2023, the Fund requested the bank to transfer the remaining Rs2 billion again to meet its commitment up to June 2023, including advance payments to contractors for the implementation of the Social Housing Project and the National Flood Management Programme to mitigate frequent flash floods. Following this request, Silver Bank Limited transferred Rs1.3 billion as follows – (a) Rs500 million on 17 March 2023; (b) Rs550 million on 27 March 2023, (c) Rs250 million on 07 September 2023, thus leaving a balance of Rs700 million. Madam Speaker, on 18 January 2024, the Fund requested Silver Bank Limited to settle the outstanding balance of Rs700 million together with all accrued interest. Subsequently, on 19 January 2024, Silver Bank Limited informed the Fund that it would pay Rs250 million by the following week and the remaining balance, including interest, by early April of 2024. Accordingly, on 24 of January 2024, Silver Bank Limited transferred Rs250 million to the Fund, of which Rs50 million were interest. Thus, leaving a capital balance of Rs500 million at the bank. Silver Bank Limited paid a total interest of Rs67.7 million to the Fund after taking into account the early withdrawal of deposits. Madam Speaker, on 13 February 2024, the Bank of Mauritius placed the Silver Bank under Conservatorship. In this context, on 19 February 2024, the Fund informed the Conservator of the remaining balance at Silver Bank Limited and requested the latter to transfer the remaining capital amount and the outstanding interest at the earliest. On 21 February 2024, the Conservator informed the fund that inter-alia, he will not accede to any request to withdraw funds from accounts maintained with Silver Bank Limited until further notice. The Bank of Mauritius on the 30 March 2026 terminated the Conservatorship of Silver Bank Limited and appointed a Receiver. The Fund had, on 09 April 2026, informed the Receiver of the outstanding balance and requested the latter to transfer the capital and the outstanding interest at the earliest possible. Madam Speaker, it is, to say the least, extremely disturbing that when quotations were sought from commercial banks for the Project Development Fund to invest its surplus funds, the quotations received from Silver Bank Limited was surprisingly way above the quote obtained from other banks. To give you an example, the State Bank of Mauritius quoted 0.75% for 12 months. Bank One quoted 1.25% for 12 months. However, Silver Bank quoted an amazing figure of 4% for 12 months. You can see what was happening. Yet, Silver Bank was awarded funds at a remarkable rate. Despite a banking system awashed with cash and near record excess liquidity, we are still dealing with this problem now, such a glaring disparity could have prompted immediate scrutiny from the Project Development Fund Committee which had experienced members, among them, the former Finance secretary, Mr Manraj, the former First Deputy Governor of the Bank, Mr Kona, and Mr Jean-Paul Arouff, former Senior Economic Adviser to the then Minister of Finance. The decision, therefore, is difficult to justify on any objective financial basis. You cannot just explain it. No prudent assessment of market conditions should support a rate of nearly four times higher than competing offers. The most plausible explanation is that the investment was not only intended to artificially strengthen the Silver Bank's financial position and its balance sheet. We are speculating, but that is the only thing we can think of. Its acceptance by the Committee raises serious concerns and serious questions about the decision-making process. The Project Development Fund Committee interests were subordinated to those of a particular institution. Thus, circumstances suggest that the outcome was effectively predetermined with a – I should say – not-so-invisible hand guiding a decision that defied both logic and sound financial management. The result was a costly breach of fiduciary duty and a failure to safeguard public funds with the care and diligence that taxpayers are entitled to expect.

Yes!

Thank you, Madam Speaker. I understand that there will be an inquiry on all these. Will the board members also be called upon and will they be brought to task?

They will be called upon. I can guarantee that to the House. They will be called to explain.

Okay. The hon. First Member for Port-Louis North and Montagne Longue! MAURITIUS BROADCASTING CORPORATION – TELEVISION LICENCE FEE – PROPOSED ABOLITION