It may be recalled that the Financial Services Commission had opened an investigation into the different steps followed on the trading floor of the Stock Exchange on Tuesday, February 16, 2016 in relation to the transfer of 45.5 million shares of New Mauritius Hotels Ltd (NMH). The regulator had retained the services of an investigator to look into these transactions of New Mauritius Hotels.
The investigator had compiled a list of offences that would have been committed at the time of the transaction, including “Market Rigging”.
Later, however, an agreement was reached between the parties in the presence of the FSC legal representative . ENL, Swan and Rogers pledged not to proceed with claims for damages against the investigator and in return, the latter agreed not to submit his final report. Now it is ICAC which is leading the charge against the FSC and the concerned companies.
Later, however, an agreement was reached between the parties in the presence of the FSC legal representative . ENL, Swan and Rogers pledged not to proceed with claims for damages against the investigator and in return, the latter agreed not to submit his final report. Now it is ICAC which is leading the charge against the FSC and the concerned companies.
Is this not a reflection of the ineffectivess of our legislations? Our regulatory and enforcement institutions are at each other's throats and for all these years, despite the whole armada of reinforcing legislations , we never had any case of insider dealing, would you believe that ? For the first time that they are investigating one , it is turning out to be a sour joke and like all other ICAC cases it is likely to be jumbled and join the spate of continuous investigations which rarely come to fruition.
Is it a surprise if we were pinned down by Esaamlag? You recall that the mutual revaluation report (MER) in its assessment of our AML/CFT regime found that we “have not kept pace with the evolving global AML/CFT environment and therefore it has several weaknesses that negatively affect its effectiveness”.
More to come !! At the plenary meeting of the Financial Action Task Force (FATF) which will be held in Paris on 16-21 February 2020, it is likely that Mauritius will be included in the FATF list of High Risk and Other Monitored Jurisdictions, known as the FATF Grey List. Who seriously believe that the law enforcement , regulatory and investigative agencies and other relevant institutions in Mauritius are up to the task?
This can be shown to be so flagrant if we care to rewind to 2010, a Report on the Observance Standards and Codes (ROSC) had then remarked that “the concentrated ownership (and membership in group structures) on our SEM increases the risk for minority shareholders from abusive actions by controlling owners and more generally shareholders from participating in the governance process. The same owner may control listed and private firms and the relationship between the different firms is not transparent to outsiders. It is not always easy for minority shareholders to identify “related parties” or to assess the fairness of a transaction. This can provide controlling shareholders with multiple and often perfectly legal opportunities to engage in activities that advance their own interests at the expense of minority shareholders."
How far have we progressed over the years. ? How fair are the transactions on our SEM ?
For us and the public to be able to assess the fairness of transactions being carried out on the SEM, the report must be made public !!
For us and the public to be able to assess the fairness of transactions being carried out on the SEM, the report must be made public !!
