Controversial billionaire Dawood Rawat has ceded his stake in
Britam and quit the firm’s board at the height of a huge financial scam
in which he is alleged to have defrauded Mauritian investors of billions
of shillings.
The Government of Mauritius yesterday
said it would take over the 23.34 per cent stake held in Britam by the
beleaguered businessman, giving it control over almost a quarter of the
financial services firm.
It will hold the stake valued
at about Sh14 billion through the State Insurance Company of Mauritius
(SICOM). It is expected that the government will then dispose of it to
repay those who lost money in a Ponzi scheme allegedly involving Mr
Rawat in his home country.
“The investment in Britam
earlier held by Mr Rawat is now in safe hands as it will be held by the
Government of Mauritius. The takeover has just commenced and will be
done in accordance with the necessary administrative and legal
procedures in the two countries,” the Mauritian Minister for Financial
Services, Good Governance and Institutional Reforms, Mr Roshi Bhadain,
said in a statement seen by the Nation.
Mr Rawat’s
resignation appears to have quelled fears at Britam, where he held the
largest stake. He is accused of collecting premiums of over 14,500
customers with the promise of high returns, a scheme that turned out to
be unsustainable reportedly leading to the loss of over Sh60 billion of
investors’ funds.
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Mauritian bank, Bramer Banking Corporation (BBCL), which is associated
with Mr Rawat, lost its licence after it was discovered to have been
operating the Ponzi scheme.
Similarly, the Mauritian Government also appointed a conservator to manage Mr Rawat’s insurance firms held under BAI Co (Mtius).
The
Mauritian minister’s announcement provides a sigh of relief to Britam’s
management and shareholders following the placement of Mr Rawat’s firms
under receivership over the alleged financial impropriety charges back
home.
Yesterday, Britam chairman Francis Muthaura
sought to reassure shareholders over the firm, saying its businesses
were not affected by the development in Bramer Bank and BAI.
He
also defended Britam managing director Benson Wairegi, who had been
serving as an independent director of Bramer Bank since July 2013.
Mr Muthaura said that the board has full confidence in Mr Wairegi’s leadership and integrity.
Mr Muthaura said that the board has full confidence in Mr Wairegi’s leadership and integrity.
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