Mr Deputy Speaker, Sir, I am informed that Banco Valor International Ltd has not been granted any licence by the Financial Services Commission. On the other hand, on 29 September 2016, the FSC received an application for an investment banking licence in the name of Alvaro Sobrinho Africa Ltd with Mr A.S. as sole shareholder and beneficial owner. Mr Deputy Speaker, Sir, at the time of the receipt of the application for the investment banking licence, Mr A.S. was already the ultimate beneficial owner of a number of entities for which the FSC had already issued licences after carrying out the due diligence on his fitness and propriety. And I am informed that the FSC used the same due diligence that was carried out in assessing the application for the investment banking licence. I am also informed by the FSC that when the initial due diligence was carried out in 2015, adverse remarks were noted and the management company that had submitted the application had provided necessary explanation and submitted the following documents to clear the matter – (a) summary of criminal proceedings dated 23 May 2013 carried out against Mr A.S. both in Angola and Portugal, and (b) notice of clearance from the Public Prosecution Service, Attorney General's Office of Angola dated 08 November 2011, declaring that the State of Angola had no wish to pursue any legal action against A.S. Mr Deputy Speaker, Sir, the licence for investment banking was therefore granted to Alvaro Sobrinho Africa Ltd. on 25 November 2016. As regards part (a) of the question, the Board of the FSC was not informed at the time the investment banking licence was granted in 2016. It was only on 02 March 2017, following adverse press articles published in February 2017 that the FSC Board was apprised of the case. These press articles related to the alleged involvement of A. S. in a case where a prosecutor in Portugal was accused of closure of several cases of which one case involved Mr A.S. This was viewed as a red flag at the FSC which had considered the summary of proceedings dated 2013 carried out on Mr A.S. in Angola and Portugal in determining the fitness and propriety of Mr A.S. while granting the licences. Mr Deputy Speaker, Sir, the FSC Board then, I am informed, was instructed that all entities having Mr A.S. as beneficial owner should not start operation without the approval of the then acting Chief Executive and a communiqué dated 02 March 2017 was issued by the FSC to that effect. Mr Deputy Speaker, Sir, I am also informed by the FSC that on 04 April 2017, Kroll Associates UK Ltd was appointed to carry out an independent due diligence on Mr A.S. and for an assessment of the reputational and integrity profile of Mr A.S. On 21 April 2017, Kroll submitted its report and highlighted various issues which adversely impacted the reputation and character of Mr A.S. and questioned his fitness and propriety. However, no documentary evidence was submitted in support of the statement made in the report, and Kroll further indicated that it would be unable to confirm the status of any criminal proceedings on Mr A.S. In the absence of elements to be considered and authoritative confirmations from FSC counterparts regarding wrongdoings imputed to Mr A.S., no enforcement actions were initiated against Mr A.S. Alvaro Sobrinho Africa Ltd did not commence business operations under the investment banking licence. The said licence was suspended by the FSC on 27 March 2018 and was terminated with effect from 11 September 2023 under section 22(4) of the Financial Services Act for non-payment of fees. Mr Deputy Speaker, Sir, as regards part (b) of the question, I am informed by the FSC that the application for the investment banking licence was examined and approved by the Applications Committee chaired by the former acting Chief Executive and comprising six members who were heads of supervision and licencing clusters at the FSC at its meeting held on 23 November 2016. I am informed that no actions were initiated against any officer. Thank you.

Time is over. I will allow one supplementary on it because time is over.

Thank you, Mr Deputy Speaker, Sir. Could the hon. Minister therefore advise the House, did the FSC actually clear Mr Sobrinho given that no enforcement action has been taken against him?

I would not say that they cleared but they did not take any action. So, they based themselves on the previous due diligence done. They gave the license but when press reports were published, then they commissioned the report from Kroll but in fact, Kroll only gave judgement but they did not supply– from what I am told – any documentary evidence and no action was taken. They only decided to request him not to start any operation. So, the companies were not allowed to operate and subsequently suspended.

Time is over! The Table has been advised that the following PQs have been withdrawn; B/630, B/672, B/675, B/677, B/678, B/680, B/681, B/682, B/683, B/684, B/685, B/686, B/687, B/688, B/689, B/690, B/691, B/692, B/694, B/695, B/698, B/699, B/700, B/703, B/704, B/705, B/706, B/707, B/708. Hon. Ag. Prime Minister!