SCBG investors: From gold to hell

As the world sets out to celebrate World Family Day, there are some families who are going through distress. Investors in the Super Cash Back Gold scheme from ex-British American Insurance company and Bramer Asset Management scheme, are currently on a hunger strike at the Jardin de la Compangie, in Port Louis. Their plight: they want to be refunded.

As the new government was ushered in, it launched a massive spring cleaning campaign to rid institutions of mismanagement which had crept in under its predecessor. Beginning April 2015, the Bank of Mauritius withdrew the operational licence of Bramer Banking Corporation. As a consequence, British American Insurance collapsed and the domino effect extended to British Amercian Investments, the overall holding structure headed by Dawood Rawat.

Along with the collapse, which was either by default or by design depending on whom you talk to, there were swathes of collateral damage. From suppliers who saw invoices remaining unpaid, employees who were laid off or had to accept pay-cuts, investors who saw their lifetime earnings vanish into thin air... Among those are people who invested in the Super Cash Back Gold and Bramer Asset Management schemes run by BAI. Many of those were hard working middle class persons who invested their lifetime savings or lumpsum into the schemes.

Since the beginning of the week a number of investors have started a hunger strike at the Jardin de la Compagnie, in Port Louis. They are asking to be refunded, some of them had to be hospitalised given their deteriorating health conditions. Politicians paid them visits and expressed solidarity, which goes a long way as we know. We met with four persons who are on hunger strike, each with a different story. The take home the hard learning lesson: They all believed they could lead a better life and their dreams have turned into a nightmare overnight.

Nirmala Sharma: “I would rather die”

A lifetime of savings gone with the wind. This is the story of Nirmala Sharma, 67, an ex-primary school teacher. We met her at the Jardin de la Compagnie before she was hospitalised on Wednesday afternoon. This devastated the woman’s blood sugar level that began to drop two days into the hunger strike. Her story could be that of anyone.

Despite her health problems, Nirmala says the hunger strike is her ultimate battle. “I would rather die in this hunger than sitting idle doing nothing. In any case, I was going to die without food in my house sooner or later. So why not die fighting for what is mine?”

After working for 32 years as a primary school teacher, she decided to remain active and worked as a florist, horticulture was her passion. This middle class woman invested Rs 2 million in the Super Cash Back Gold scheme of British American Insurance. One million for herself and one million for her sister. 

“I received a lump sum of Rs 850,000 when I retired from my teaching job. With the money I was earning from selling flowers, I was able to make some savings. It came to me that I could invest. Rs 1 million in BAI. My sister, who resides in Canada, followed suit and invested the same amount. Little did we know that our lives would turn into a nightmare.”

After the BAI crash, the life of Nirmala turned upside down. Overnight, this hardworking woman who strived hard throughout her life to enjoy a peaceful retirement, saw her dreams vanish. Not only that, she could not even afford a square meal anymore.

“After the crash, the government decided to stop paying our monthly interest. This money was a means for us to settle our bills and manage our monthly expenditures. Two years into the crash, we are in a dire condition. Due to illness, I am unable to work anymore,” she says unable to roll back the tears.

To rub the salt in, her husband now has to take on seasonal jobs to make ends meet. Her dinner now mostly comprise of moringa (brede mouroum) soup and rice. Being diabetic, this is not the most ideal of situations. 

“We are living with only our pension. We have to settle the bills and whatever remains, we have to manage with it. There are days where we cannot even buy vegetables. I have to borrow money from my sister. We were planning to live a peaceful life, but now, we are living through hell.”

Nirmala Sharma does not want the government to take away Rs 500,000 from the Rs 2 million she invested along with her sister. Why should she give away her hard-earned money for no reason? “There is no logic behind the government’s rationale. We are not at fault. We have saved every penny and they cannot take it from us. Before the crash, we were receiving our interest instalments without any difficulty. Now we need to fight to get our money.”

Serge Iris Aurokium: “I wanted to help my country”

When luck came knocking on the door, Serge Iris Aurokium thought his life would change for the better. He had just won Rs 44 million at the Lotto game and what could be better. Dreams came to him, those of helping his son set-up his own business, helping the downtrodden, caring for the disabled and living a happy life next to his wife. 

Still on cloud nine, he heard about BAI group. He decided to pour Rs 40 million into Bramer Asset Management, another investment scheme run by the group which was scrapped by the government in 2015.

Aged 69, Serge Iris Aurokium spent some 39 years in France. Why did he come back? Like most Mauritian expats, the love of the country was a higher calling than the luxurious life he was leading in Europe. A decision he sorely regrets now that his fate has changed.

“I did not enjoy a blissful childhood. I went to France to live a better life. I worked really hard there and came back to Mauritius seven years ago with the hope of now helping my country. In 2013, I won the Lotto. It was a turning point. I thought of investing it and help my son as well as work on different social projects. But with the dismantling of BAI, everything lay in tatters.”

Serge has lost courage and is really disappointed with the Mauritian government. “I have worked hard and tried my luck in the Lotto for a better life and not to suffer. It exhausting for me to get involved in a hunger strike at this age, but same goes for all the administrative procedures to get my money back. I have reached a point in life where I should have been relaxing and enjoying life with my family. This situation has taken its toll on me. There are nights when I cannot sleep.” 

The government is proposing to give him only Rs 32 million over four years. “Without any reason, I stand to lose Rs 8 million. This is a huge amount of money for us and we could have used it for many social projects. I came back with a vision and mission. But now, I regret my decision. Despite having French nationality, I returned to serve my country. I thought of giving back something but nothing has worked as planned.”

Serge Aurokium was due to undergo surgery on Friday but says he will postpone it. His birthday fell during the hunger strike and for him, that just a sacrifice he has to make. “I will stay put with the hunger strike along with other investors. We are all suffering and we want justice.”

Claudio Porcu: “I feel lost”

An Italian by birth and married to a Mauritian lady, Claudio Porcu, 78, came to live in Mauritius six years ago. A decision he questions now that his fortunes have changed. His dream was to enjoy a peaceful retirement in a residence along the coast where he would watch sunsets probably. 

He had a tough call of reality when the BAI group was dismantled by the government in a surprise and swift move. Despite his age, he decided to go on a hunger strike to get his dues. He want to go till the end in this battle. 

“After working in the marketing and sales field, I came to Mauritius with my wife after my retirement. I had heard a lot about this country. So I thought what a great place to spend the rest of my life. I heard about BAI, I thought of investing Rs 3 million in the SCBG. The monthly interest payments would have helped me towards living expenses. Well, it was set to be a good life you know. But all my hopes were quashed in one night. Today, I am living a life I had never imagined in my wildest dreams,” he confides sorely.

Claudio is now getting by with an Rs 11,000 monthly pension and out of those. Rs 7,000 go towards paying the rent. Was BAI still in existence, he would have been earning around Rs 35,000 per month. Gone are his dreams of a golden retirement and in comes a life he never thought of.

“My wife never worked in her lifetime. Now at 57, she is doing odd jobs to make ends meet and cater for our daughter who is still studying. It is hard coping with such a life when I had worked hard for it to be much better and less painful. I feel lost in a foreign country. I wanted to enjoy the sea, sand and beaches but with all these issues, I am stuck within four walls everyday getting over the administrative procedures to get my money back.”

When he moved here, Claudio Porcu wanted to be get the Mauritian nationality. But with so much on his plate, he would be crazy to do so, he says. “I have lost trust in the State and the current government. We have been traumatized and are living in a state of utter confusion. The government wants to take 20% of our money. This is unacceptable and is unjust.”

Raficq Fokeerbux: “My business is suffering”

Raficq Fokeerbux, 65, is the director of Gallerie Fokeerbux situated in Rivière du Rempart. He invested a large sum of money in Bramer Asset Management and SCBG in 2005. His aim was to use this investment to expand his business. As any good businessman, Raficq Fokeerbux was waiting for the first batch of his investments to reach maturity. He would then plough this money in his business. But that maturity never came.

“I have 120 employees and I want to preserve their jobs. But with all this happening, my business is suffering. I already had to downsize and lay-off 20 employees in less than two years.”

He is willing to risk his life in this battle. He is a diabetic and underwent surgery only six weeks ago. “My health is still fragile. Doctors advised me to go for physiotherapy sessions but I missed several sessions. I have left my family to stay under a tent to fight for my rights. Overnight, I lost what took me 57 years of hard work to earn. I started working in shops since I was eight years old. The money I invested in those schemes is the fruit of my hard work and dedication over the years. It did not fall from the skies, I earned it the hard way!”

Raficq Fokeerbux wanted to bring more development in Mauritius but he is now helpless. “I will fight alongside other victims. My doctors told me to put an end to the hunger strike because of my health condition, but I cannot step back. The government cannot turn a deaf ear to our plight. They want to take 20% of the sums we invested and say they will pay us back in instalments. But till now, we have not received a single cent!”