Madam Speaker, SBM Holdings Ltd is the holding and ultimate parent company of the SBM Group, which includes SBM Bank (Mauritius) Ltd. It is a public company public company limited by shares, and is listed on the Stock Exchange of Mauritius. With regard to part (a) of the question, as at 31 March 2026, the Government of Mauritius holds a direct shareholding of 4.92% in SBM Holdings Ltd, for a market value of Rs987 million. Concerning part (b) of the question, I assume that the hon. Member is referring to the loans made by SBM Bank (Mauritius) Ltd. In this respect, I am informed that, for the period 2014 to 2024, the cumulative write- offs amounted to approximately Rs14.34 billion, compared to just Rs1.12 billion for the period 2004 to 2013. On average, for the period 2014 to 2024, the Bank was writing off Rs1.3 billion annually, compared to an annual average of Rs100 million from 2004 to 2013. This represents a more than a tenfold increase, clearly reflecting a total disregard of basic banking principles and a complete breakdown in the effectiveness of asset monitoring, risk management and internal controls over the period, that is, 2014 to 2024. That was not just a systemic failure but a deliberate action to dilapidate the Bank’s assets. One must ask oneself why has the Bank been subjected to such a terrible fate! Two weeks ago, in this House I gave enough details about the plundering which took place at Silver Bank and before that, I had replied to a PQ on the Development Bank of Mauritius where, again, hundreds of million were given away to cronies of the previous regime without collaterals. The Rs14.34 billion which had been written off by the SBM took place in the same vein as was seen in other banking institutions under the, I should call it a kleptocratic former regime. During the 10-year period, they stopped at nothing to loot the assets of various banks while their protégés at the Central Bank turned a blind eye on the regime’s daylight robbery. That’s what it was, Madam Speaker, daylight robbery. The consequences have been significant. The profitability of the Bank was severely impacted, and its capital has been eroded. Madam Speaker, this adds to the long list of scandals under the former regime, involving huge loans made to large corporates without proper scrutiny and due diligence. Surprisingly, these loans were provided without adequate collaterals and in some cases without any collateral at all. The House will recall the total loan of Rs1.4 billion which was granted to Dhyanavartam Ltd, the operator of Maradiva Villas Resort & Spa, at a time when the company was already facing financial difficulties. Yet, they got another loan of Rs1.4 billion. This includes a facility of approximately Rs470 million extended to Dhyanavartam Ltd in 2024 on the eve of the General Elections in spite of the fact that the then Credit Committee did not approve the loan. In spite of that, they were given the loan. Allegedly, this was overridden by the then Chief Executive of the Bank, Mr Premchand Mungur and this matter is being investigated by the FCC. Madam Speaker, when we look at the period 2014 to 2024, the impaired loans were highly concentrated. Three companies alone were sufficient to erode the capital of the Bank to a point where a new capital injection had to be made. The total loans granted to these three foreign companies, namely NMC Healthcare, Pabari Group and Renish Petrochem FZE, without adequate or no tangible collateral at all, amounted to Rs9 billion out of the total of Rs14.34 billion which represents approximately two-thirds of the total toxic loans for that period. These impaired loans plummeted the profits of the SBM Holdings. In 2019, the SBM Holdings recorded a lamentable profit of Rs15 million only in contrast to the Rs2.7 billion in 2013. Look at the damage that has been done. That was an all-time low in the recent history of the Bank. This is what the MSM regime did to the SBM, supported by their accomplices in the Bank of Mauritius. In all these bank scandals which we have brought to light in this House, one must ask where was the supervisory responsibility of the Bank of Mauritius! Fortunately, as from January 2025, the situation at SBM Bank has been improving, and the bank has proved to be quite resilient in spite of the past scandalous actions. Madam Speaker, what has happened at the SBM, cannot and will not go unpunished. With regard to all provisions and write-offs, internal investigations are already underway. A special dedicated team has been set up on 23 March of this year for this purpose and specialised investigators are being recruited. We need specialised investigators. It is acknowledged that, on the recovery side, the task will be challenging in the absence of tangible collateral. They just gave loans without collaterals. The appointment of external consultants to assist with recovery and investigated efforts was approved by the Board in December 2025. The focus is not only on the external parties, but also identifying with the Bank who have contributed to or enabled such transactions. Even individuals who may no longer be employed by or associated with the Bank will not be spared. Madam Speaker, as regards to part (b)(i), I am informed that the Bank has taken several actions to recoup amounts due, including – (a) the realisation of collateral and securities, where there are collaterals; (b) the initiation of legal proceedings against defaulting borrowers, both locally and internationally, and (c) the implementation of recovery and restructuring mechanisms, where it would be appropriate. As of now, an amount of Rs2.6 billion has been recovered by the Bank. I am informed that all avenues are being pursued to recover the dues. As regards part (b)(ii), I am informed that from 2014 to 2019, it was a Board Credit Committee that made the credit decisions. The various chairpersons of this Committee were as follows – (a) from January 2014 to December 2014 - Mr Muni Krishna Reddy; (b) from January 2015 to December 2017 - Mr Nayen Kumar Ballah; (c) from January 2017 to March 2019 - Mr Mahmadally Burkutoola, and (d) from March 2019 to December 2019 - Mr Raja Krishna Chellapermal. With effect from 2020, the responsibility for credit decisions was then entrusted to the Management Credit Forum. The chairpersons of this Forum for the period 2020 to 2024 were as follows – (a) from January 2020 to June 2021 - Mr Jorge Stock; (b) from July 2021 to January 2023 - Mr Anoop Nilamber; (c) from February 2023 to October 2023 - Mr Sanjaye Rawoteea, and (d) from November 2023 to December 2024 - Mr Premchand Mungur. The House may wish to note that both the Board Credit Committee and the Management Credit Forum were managed by the Head of Credit of the Bank. The Head of Credit is responsible for assessing and making recommendations in respect to loan applications. Over the period 2014 to 2024, this position was occupied by the following persons – (a) January 2014 to July 2016 – Ms Pauline Seyave; (b) September 2016 to August 2021 – Mrs Veronique Lim Hoye Yee; (c) September 2021 to December 2022 – Mr Darmen Hurkoo; (d) January 2023 to December 2023 – Mr Rajnish Lutchmah, and (e) January 2024 to December 2024 – Mrs Veronique Lim Hoye Yee. Madam Speaker, as regards part (b)(iii), I am informed that the Board of Directors has the responsibility to safeguard the Bank’s assets and protect its clients’ deposits. This involves ensuring sound banking operations, effective leadership as well as exercising overall control of its affairs. It also entails proper risk management and financial oversight through the establishment of a robust internal control system. The Board is thus responsible for minimising credit losses and write-offs as well as the initiation of appropriate recovery measures in respect of impaired loans. It goes without saying, Madam Speaker, that the Board Directors failed miserably in their fiduciary duties. Madam Speaker, when one connects the dots, it is evident that these toxic exposures are not isolated incidents but the result of a pattern of poor lending decisions, absence of controls and inadequate oversight for a number of years under the former Government. I would even add it was done deliberately. Let me be very clear, Madam Speaker, this Government will not tolerate any form of mismanagement that undermines public confidence or jeopardises the integrity of our financial system. As I have said on numerous occasions, these crimes will not go unpunished.

Thank you. Okay. Hon. Second Member for Grand' Baie and Poudre d'Or. POLICE FAMILY PROTECTION UNIT – NORTHERN DIVISION – CASES & JURISDICTION