Section 32(3) of the Bank of Mauritius Act prescribes that the Bank submit a copy of its audited accounts together with a report on its operations to the Minister of Finance not later than 4 months after the financial year end, i.e., by latest 31st October 2021. And the Minister shall at the earliest available opportunity lay a copy of these documents before the National Assembly. So far, this has not been done. The audited accounts of the Bank and its report on operations for the year ended June 21 is still awaited. The Bank should explain its non-compliance with the provisions of its legislation, at least as a mark of respect owed to the members of the National Assembly.
Moreover, Section 32(5) requires that the Bank publish a monthly return of its assets and liabilities, ‘as soon as may be practicable’ after the end of the month. In the past, the Bank published the return of assets and liabilities for every month within the following month. Since July 2021, however, BoM has discontinued this practice and no monthly return of assets and liabilities has been published by the Bank since this date, in breach of its legislation.
For such an important regulatory institution of the financial sector, the lack of regard for transparency and good governance is appalling. The public is expecting, among other issues, assurances about the capitalisation of the Bank, which was considered by the IMF as holding negative equity. Promised information about credit extended by the Mauritius Investment Corporation in the Bank’s annual accounts is also eagerly awaited.
It may also be noted that foreign liabilities of the Bank of Mauritius have increased sharply since July 2021 to above Rs30 bn at the end of October 2021. In the interests of transparency, as provided under section 33 (1) of the Bank of Mauritius Act, the Bank of Mauritius should disclose details of its rising external indebtedness.
Bank of Mauritius Act, 2004
32. Budget, annual accounts, annual report and returns
(1) The budget of the Bank in respect of a financial year shall be determined by the Board not later than 15 June immediately preceding that financial year.
(2) The annual accounts of the Bank shall be established in a transparent manner to ensure true and complete data on the financial status of the Bank.
(3) The Bank shall, not later than 4 months after the close of its financial year, cause to be made and submit to the Minister a copy of the annual accounts certified by the auditors together with a report on its operations during that year.
(4) The Minister shall, at the earliest available opportunity, lay a copy of the annual report and audited accounts before the National Assembly.
(5) The Bank shall, as soon as may be practicable, after the last working day of each month, prepare and publish a return of its assets and liabilities as at the close of business on that day.
(6) A copy of the return referred to in subsection (5) shall be submitted to the Minister.
(7) The Bank shall cause to be published in the Gazette –
(a) a copy of the audited accounts referred to in subsection (4), not later than 6 months after the close of its financial year; and
(b) a copy of the return referred to in subsection (5)
33. Transparency
(1) Without prejudice to sections 3(3) and 26, the Bank shall promote open discussions and comments on its monetary and financial stability policies.
