Raising legitimate questions

The traditional message of the Prime Minister Sir Anerood Jugnauth to the nation on the occasion of the New Year was yet another opportunity for him to reiterate his conviction in the struggle against fraud and corruption and in the advent of a second “economic miracle”. As it was expected, the Prime Minister has recalled some of the socio-economic measures that have been implemented by the l’Alliance Lepep government since it came to power at the end of December 2014, namely the increase of the Basic Retirement Pension, the Basic Invalidity Pension and the Widow’s Basic Pension. It was also not surprising at all when the Prime Minister harped on the “cleaning operation” during the whole year, arguing that it was necessary to do so because “l’indistri kokin ti installé dan pei” (looting industry had well settled in the country). In his inimitable style, Sir Anerood Jugnauth stated that: “ Nou pe netwayé ar karcher si bizin” (we are using Karcher if the need be). He explained that “cleaning operation” had benefitted the country, giving as example the cancellation of the contract awarded to Betamax, and underlining that this has enabled the government to save up to Rs 3 billion on the transport of petroleum products. He also mentioned the Dufry/Frydu saga, whereby millions of rupees were paid as commission by the Mauritius Duty Free Paradise. The Prime Minister also said that the “cleaning operation” is being carried out at Air Mauritius too. As regards the second « economic miracle », Sir Anerood Jugnauth seems to rely on the recent statistics concerning the tourism industry. He also mentioned about investment to the tune of Rs 45 billion in various sectors and Rs 15 billion in infrastructural development projects that are due to start in July this year. While reiterating his faith in the “Mauritian genius”, he appealed to each and everyone for some more patience and understanding. The Prime Minister was severe in his comments on the BAI saga. He once more insisted that there was a mega Ponzi scheme involving some Rs 25 billion within the group. He added that BAI was a “planified and organized swindle”. He explained that government has taken the right measures so as to avoid the financial system to crumble down and to save a maximum of jobs within the former BAI group. Extracts of the preliminary report of the nTan Corporate Advisory Pte. Ltd on the former BAI group, published in the local press a few days ago, tend to justify government’s decision to intervene. If we rely on the preliminary findings by the forensic auditors, it now seems obvious that a Ponzy scheme was being operated within the group. This indeed provides grist to the mill, as far as the government is concerned. In the wake of these revelations, those who were convinced that government had taken the wrong decision in intervening in the BAI /Bramer files would have to review their original position. According to the extracts of the preliminary report published in the local media, it would appear that between 2009 and 2013, the BAI was making losses amounting to Rs 14 billion. The group then had recourse to some sort of window dressing with the help of some auditing firms. Already two auditing firms could face tough times in the event that actions are taken, probably once the final report is handed over to the Bank of Mauritius which has ordered the report. It would be interesting to know if the report analyses the role played by regulatory bodies like the Bank of Mauritius and the Financial Services Commission. An article published by L’Express on Tuesday (5 January 2016) reveals that an amendment to the Bank of Mauritius Act in 2010, that would have favoured the BAI, was avoided thanks to the resistance of the Leader of the Opposition, Mr. Paul Bérenger. We learn from the article that the then Minister of Finance Mr. Pravind Jugnauth, while presenting the Finance Bill, had proposed an amendment that would have extended to other entities the granting of advances to financial institutions by the Bank of Mauritius. In brief, it would be the Bank of Mauritius, in other words the Governor, and certainly not the Board, which would decide on the granting of advances! This revelation is indeed troubling. In clear, it means that the BAI had enormous leverage on government to be in a position to influence its ministers to bring amendments to existing legislations. On the other hand, it is hard to believe that neither Mr. Pravind Jugnauth nor his close aides detected that maneuver. Logically, the Prime Minister will have to take his Karcher and clean earlier misdoings as well! However, at this stage, we need to be cautious. Even the Bank of Mauritius is being extremely prudent. It is obvious that the findings of the nTan report will be used as government’s defense in the case that will oppose the ex-Chairman Emeritus of the BAI Mr. Dawood Rawat to the Government of Mauritius. In all fairness, we need to wait for the arguments of the lawyers of Mr. Rawat to get a clearer picture of the situation. Coming back to the economic take off, it is worth noting that the priorities of the Prime Minister and his Minister of Finance Mr. Vishnu Lutchmeenaraidoo tend to differ, although they have the same objectives. While Sir Anerood Jugnauth identifies the port sector, the blue economy and the construction sector as those to bring the much awaited economic take off, Mr Lutchmeenaraidoo is betting on the blue economy, the modernization of the port and consolidation of trade and other economic activities between Mauritius and Africa. There was not much about consolidating democracy in the speech of the Prime Minister, despite the fact that his government has recently taken the decision, though already severely criticized by the opposition, to set up a committee on electoral reform. Not a single word was mentioned regarding the Freedom of Information Act. It was through Miss Cori Zarek, Senior Adviser for Open Government /US Government, who was conducting a workshop for media professionals in Mauritius in December, that we learnt that the Mauritian government will most probably come forward with the Freedom of Information Act this year. Press articles have also revealed that the live broadcast of parts of the sittings of the National Assembly could be delayed due to technical and legal imbroglio. The government has ground for strategic advantage during these first three months of the year for the simple reason that the National Assembly will resume on 29 March. No embarrassing PNQs, PMQTs and PQs for three long months. This will give time to the government to prepare its “rentrée politique” (resuming of political activities) for 2016. Everything will depend on the appeal of Mr. Pravind Jugnauth to be heard at the Supreme Court on 12 and 13 January. But this does not mean that the Opposition will sit idle. Some do not accept that the MMM has made some progress but this is a fact. Its progress will depend on its performance at the National Assembly and on its capacity to woo back the “militants”. Already the Muvman Liberater has moulded into the establishment of the government and it would not be easy for it to survive if it has to be in the opposition. Similarly, the Mouvement Patriotique (MP) is sitting on the fence. The speech of MP’s secretary general Mr. Joe Lesjongard at St. Croix on Wednesday, during which he praised Sir Anerood Jugnauth while criticizing the PMSD, more precise;y its leader Mr. Xavier-Luc Duval, depicts the strategy of this offshoot of the MMM. This leaves us with the Mauritius Labour Party. Will the party elbow its way to the forefront of local politics? For the time being, a preliminary report on the review of the constitution of the party is ready but has not yet been submitted to the leader, Dr Navin Ramgoolam. This report will most probably be presented at the congress of the party next month, in the context of celebrations marking its 80th anniversary. It would appear that one of the main suggestions has to do with the limitation of the mandate of the leader. Last but not the least: the question put by Dr. Arvin Boolell, regarding whether Sir Anerood Jugnauth’s tenure as Prime Minister is legal or not, is quite legitimate. It is hoped that our brilliant constitutionalists could enlighten us on this matter.