3.55 Billion Reasons Why Mauritius is Shocked by Silver Bank

It has been reported that the ongoing Silver Bank Limited story represents a major banking scandal in Mauritius, involving the rapid collapse of a licensed institution, significant public fund exposure (approximately Rs 3.55 billion), toxic loans, alleged money laundering, and regulatory/governance failures.

L'Express reported:-

• As the hearings multiply and the documents in the case continue to be analysed, the Silver Bank case is now one of the most important financial cases before the FCC, revealing deep flaws in the country's banking governance and financial control mechanisms.

KEY FACTS

• Key Timeline: Silver Bank (rebranded from BanyanTree Bank) received a new banking license on 11 November 2021 after a shareholding change and recapitalisation, approved by the Bank of Mauritius (BOM) following due diligence. It was placed under conservatorship on 13 February 2024 due to concerns about financial soundness. Conservatorship ended on 30 March 2026, with a receiver (Huns Biltoo of KPMG) appointed; the banking license was fully revoked on 30 April 2026.
• Public Funds at Risk: State and parastatal entities deposited Rs 3.55 billion, primarily from the Projects Development Fund (Rs 3 billion), plus contributions from entities like the National Insurance Company and municipal councils. Recovery prospects are poor due to low asset quality and a high share of toxic loans.
• Ongoing Investigation: The Financial Crimes Commission (FCC) is intensifying probes into regulatory oversight, decision-making, and loan practices. On 19 May 2026 (Monday hearing referenced), former BOM First Deputy Governor Mardayah Kona Yerukunondu and other BOM staff were interviewed as witnesses to reconstruct institutional decisions.
• Criminal Elements: Former bank executive Chetan Singh Ramcharitar (also referred to as Rajiv) faces provisional charges of conspiracy to defraud and money laundering involving Rs 1.2 billion in loans to seven companies (linked to international networks, including those associated with Prateek Gupta). Low recovery rates on loan portfolios highlight asset deterioration, particularly post-COVID lending.
• Political Context: Prime Minister Navin Ramgoolam has publicly criticised the situation as "seriously flawed," "mafieuse*," and involving an "institutional conspiracy," pointing to investments made against safer options (e.g., Treasury Certificates) and political influence under the prior regime. The case exposes broader weaknesses in banking supervision and risk management.

Analysis

• Regulatory and Governance Failures: The rapid decline—from license approval in late 2021 to conservatorship in early 2024—suggests shortcomings in due diligence, ongoing supervision, and early warning systems at the BOM. Interviewing senior figures like Yerukunondu indicates the FCC is examining whether approvals and oversight were compromised. Public pressure on local authorities to maintain deposits (as noted in PAC reports) further suggests that overriding prudence is at play.
• Financial and Systemic Risks: Exposure of public funds amplified the case's impact. Toxic loans, especially to entities with weak or fictitious backing, resulted in very low recovery rates. Connections to international figures such as Prateek Gupta (linked to a major Trafigura fraud scandal) raise red flags regarding beneficial ownership scrutiny and anti-money laundering controls. The shift to receivership and license revocation signals no viable rescue, leaving depositors and the state to bear losses.
• Broader Implications: This is one of Mauritius's most significant financial probes by the FCC, underscoring vulnerabilities in a sector critical to the economy (offshore finance, etc.). It erodes trust, may deter investment, and fuels debates over political accountability. Calls for full inquiries, asset tracing (including overseas), and prosecutions reflect demands for transparency. Recovery will be challenging, with hundreds of millions potentially unrecoverable.
• Potential Outcomes: Continued FCC hearings and document analysis could lead to further arrests, charges against more officials/executives, or recommendations for BOM reforms. Politically, it strengthens the current government's narrative on prior mismanagement while pressuring it to deliver on recoveries and protections for depositors.

The scandal has national implications, affecting depositor confidence, public finances, and highlighting potential conflicts in regulatory approvals tied to politically connected shareholders (e.g., links to the Gupta family).

Meaning:* mafieuse*,"

• Mafia-like, mafia-style, or resembling the Mafia.
• It describes something corrupt, shady, involving organised crime tactics, cronyism, collusion, or gangster-style operations, often with implications of fraud, political protection, and hidden networks.

L'EXPRESS LONG READ

https://lexpress.mu/s/un-ancien-first-deputy-governor-entendu-par-les-enqueteurs-558209

The investigation into Silver Bank Limited takes on a new dimension with the hearing on Monday of Mardayah Kona Yerukunondu, former First Deputy Governor of the Bank of Mauritius (BOM), who was heard as a witness by investigators from the Financial Crimes Commission (FCC) and other BOM employees.

This hearing comes as the FCC intensifies its investigations into the conditions surrounding the management, supervision, and gradual collapse of this banking institution, which has now disappeared from the Mauritian financial landscape.

In this complex case, we interviewed several Bank of Mauritius employees to obtain detailed information on the regulatory procedures, control mechanisms, and decisions that led to the current situation of the Silver Bank.

The investigators are trying to reconstruct the entire chain of institutional and financial decisions.

As a reminder, the Bank of Mauritius has officially revoked Silver Bank Limited's banking license, thereby permanently ending its operations. The bank, which operated under this name after the transformation of the former BanyanTree Bank Limited, had obtained a new licence on 11 November 2021, following a change in shareholding and a recapitalisation validated by the regulatory authorities after a due diligence exercise.

However, less than three years later, the situation has deteriorated sharply. Warning signs regarding the bank's financial soundness led the authorities to place the institution under conservatorship on 13 February 2024, pursuant to the provisions of the Bank of Mauritius Act. The main aim of this measure was to protect depositors and limit systemic risks in the banking sector.

The case has taken on a national dimension due to the significant exposure of public funds. According to official data, about Rs 3.55 billion in public placements were committed to the Silver Bank at the time of its administration. Several state and parastatal entities were among the depositors, raising questions about the investment strategy adopted at the time and the risk control mechanisms.

In Parliament, Prime Minister Navin Ramgoolam denounced investments made despite recommendations favouring safer investments, in particular Treasury Certificates.

He referred to decisions that he said had helped to mask the bank's real fragility and described the situation as "seriously flawed", while stressing that several hundred million rupees remain to be recovered.

The toxic loans component is another central axis of the investigation. The authorities have revealed that the recovery rate for some loan portfolios is extremely low, indicating deterioration in the quality of the bank's assets. The FCC is particularly interested in loans made under post-COVID-19 economic programs involving several companies linked to international business networks.

In this context, a former bank executive, Chetan Singh Ramcharitar, is already being prosecuted for alleged conspiracy in a money-laundering case.

Investigators believe he may have played a role in validating questionable credit files by bypassing certain due diligence procedures.

As the hearings multiply and the documents in the case continue to be analysed, the Silver Bank case is now one of the most important financial cases before the FCC, revealing deep flaws in the country's banking governance and financial control mechanisms.

Sources

• https://lexpress.mu/s/un-ancien-first-deputy-governor-entendu-par-les-enqueteurs-558209  

• Primary story source: https://lexpress.mu/s/un-ancien-first-deputy-governor-entendu-par-les-enqueteurs-558209 (20 May 2026 article matching the query text).
• BOM Official Notices:
• Revocation of License: https://www.bom.mu/media/media-releases/public-notice-revocation-banking-licence-silver-bank-limited
• Conservatorship (2024): https://www.bom.mu/media/media-releases/public-notice-bank-mauritius-places-silver-bank-limited-under-conservatorship
• Termination & Receiver: https://www.bom.mu/media/media-releases/public-notice-termination-conservatorship-silver-bank-limited-and-appointment-receiver
• News Coverage:
• https://newsmoris.com/risky-investment-rs-3-55-billion-of-public-funds-invested-in-silver-bank/ (Public funds details)
• https://lexpress.mu/s/rajiv-ramcharitar-arrete-rs-127-milliard-en-jeu-547936 (Ramcharitar prosecution)
• https://newsmoris.com/silver-bank-scandal-depositors-accuse-3-former-officials-of-criminal-drift-to-pm/ (Depositor reactions)
• https://www.comsuregroup.com/news/mauritius-toxic-loans-and-fictitious-guarantees-is-the-fcc-unravelling-mauritius-largest-banking-fraud/ (Toxic loans overview)

Additional context from parliamentary statements and related reports is widely covered on Mauritian news sites (e.g., Defi Media, L'Express) and BOM/FCC channels. Search "Silver Bank Limited FCC" for the latest updates, as the investigation is active.