Salim Muthy, on sale by levy: “Interest rates are still abusive”

The social worker Salim Muthy started his struggle against “Sale by Levy” in 2004 with some victims. He participated in three hunger strikes by the sides of Harish Bhoodoo and others in 2006, 2007, and 2009. He was arrested by police several times for illegal gatherings and pacific marches. Since then, the “Sale by Levy” issue has been brushed under the carpet in the wake of other scandals making headlines. News on Sunday asks this unflagging social worker regarding the current situation.

What is the current situation about Sale by Levy?

Actually it is status quo, the system is working as usual, with seizures by banks and other financial institutions including money lenders, and put on Sale by Levy at the Master’s Court every week. Solicitors are insisting to put these properties on sale and they charge 10% commission on the sale value. Interest rates are still abusive and there is a total lack of information and transparency when some clients ask for a statement regarding their outstanding loans. The whole system is outdated but is still in place despite the struggle for a more humane way to deal with people who are deeply indebted. Finally, the authorities have put into place an institution to look into the matter but results are far from being satisfactory.

Is the weekly sale still held?

Every Thursday at 1:30 pm at the Master’s Court; about 30 properties are put on sale, 20 for a first reading and more than 25 are mentioned.

After the change in government, a new Chairman was appointed though...

The Protection of Borrowers Act has been introduced in 2007 to protect any borrower under this new law. An office was open for the Commissioner, appointed under this Act, to listen and to search a solution for borrowers who are in difficulty at paying their debt, in other words the commissioner is appointed for the protection of borrowers. The following were nominated by government:

2007: ex-Justice Robert Ahnee.

2009: Attorney Girish Nunkoo

2010: Nanda Kisnen – Bar at Law and since

2015: Sonah Oree – Attorney, is at post.

It seems that the new Chairman, Sonah Oree, could do with increased authority to protect borrowers. The office of Commissioner for Protection of Borrowers should be a full-fledged one.

A report was published some time back on Sale by Levy. Did you read the report? What are your views?

The report was recently published and made public by Wendy Rengan, the president of a commission of inquiry. The Report contains 267 pages. Only 13 of these pages have been retained by government and will be implemented soon. I read the report. My attention was drawn to these points:

1. That the office of commissioner for the protection of borrowers should be abolished.
2. All matrimonial residents should be preserved and are not to put for sale when children, spouse and elder persons live in.
3. To set up a new full-fledged day to day running office namely – Office for the Protection of Borrowers which is to be presided by an ex-Judge or a Senior Magistrate with two assessors.
4. The setting up of ‘A Solidarity Sale by Levy Fund’.
5. The Protection of Borrowers Act should be amended.
6. All borrowers must be protected by an insurance cover when their property is mortgaged.

Have you ever proposed an alternative to Sale by Levy to the authorities?

Since the beginning of my struggle to stop the Sale by Levy process and the restitution to victims of their lost property following this inhumane financial procedure, I suggested to the authorities that the sale by levy at the Master’s Court be stopped immediately. The Governor of the Bank of Mauritius must have more powers to act as watchdog over all financial institutions. The Movable and Immovable Property Act should be amended; and a financial Ombudsperson appointed to look into all cases of abuse.

What has been done for the relief of victims of Sale by Levy?

A sum of 100 million rupees for victims were disbursed for financial assistance. Two commissions of inquiry on sale by levy were set up – in 2006 and in 2009. A commission of inquiry was set up on land prescription to find out of any fraud. The Report of this Commission has not been published yet. A Land Fraud Squad has been set up by the Commissioner of Police for inquiry into the case of anyone who has been dispossessed of his property.

The Protection of Borrowers Act has been voted at the National Assembly to protect borrowers. Recommendations are to be implemented to protect borrowers. The Sale by Levy Fund has been implemented and 47 victims have been saved by the ‘Sale by Levy Fund’ and their property were given back to them in 2007. The Anti Money Laundering Act been amended to protect victims from money lenders and a new law to fight against ‘attorney – money lenders’ and buyers at the Master’s Court.