Following the blowup of
a financial scam and the crackdown on unlicensed investment activities by the
regulatory authorities concerned, namely the Bank of Mauritius and the
Financial Services Commission, an interesting exchange of crossfire has taken
place in the media, involving the ministry of finance, and the current and
former BOM Governors. The present BOM Governor
was quick to direct his diagnosis towards legal and regulatory gaps, especially
between the BOM and the FSC. The Ministry of Finance, for its part, felt it was
premature to pin the blame on legal shortcomings, while the rumblings from
Government appeared instead to reflect dissatisfaction with the FSC's role,
rather than the BOM. A former BOM Governor authoritatively supported the notion
of regulatory gaps, while another shot it down to pieces without any
equivocation.
