Investigation by the Financial Crime Commission (FCC) on the acquisition of 70% of shares in Eastcoast Hotel Investment Ltd  Hotel Ambre) by the MIC has taken a new twist following  statement by one of its Independent Directors Louis Rivalland. The investigators of the FCC who have up till now been fishing in the dark are about to have a quite spooky experience.

The story of this particular transaction goes back to 2022 when the objectives of the MIC were  revised as to include holding of financial assets such as stocks, bonds, real estate, or other financial instruments funded either in Mauritian Rupees or by foreign exchange assets. Expecting  to generate an inflation- adjusted return over the holding period all while transferring most of the risks associated with ownership of the  hotel  to the tenant, back on 6^th December 2022, Management of MIC proposed to its  Investment Committee (IC) to acquire 1,596 Class B Shares of Eastcoast and lease the Hotel to Sun Resorts Limited  on new terms which guarantee rental yield of at least 8.5% per year. 

However the Board meeting of 22 December 2022 requested more time to consider the Investment Proposal. Meanwhile MIC mandated Elevante Property Service Ltd to carry out a proper valuation of the property. Using the income approach Elevante Property Services Ltd set the valuation at MUR 3,002,600,000. On 9^th January 2024 Armand Appavou sent out a final offer of  Euros 48 m ( approx. 2,4 billions) 

On 05^th February 2024 , the Board of Directors is presented with the letter of offer  from Appavoo and a revised proposal  from the Investment Committee. Subject to a string of conditions the Board of MIC  agrees to acquire  1,596 Class B Shares in Eastcoast Hotel Investment Ltd representing 70% of the property at a cost of MUR 2.1 billion.

The mystery

The term sheet in the board paper  clearly specifies the conditions precedent to be satisfied and the amount approved. However the minutes of proceedings does indicate approval was obtained for the acquisition at a price of Euros 48 m ( MUR 2,4 bn)  which implies an excess of MUR 300 m. Even stranger, the paragraph 6 of the draft minutes of proceedings  and the final minutes of proceedings which refers to the approval of the transaction for an amount of MUR 2.1 billion has altered. The questions that should arise from the documents in possession of investigators at the FCC : 

1. Who altered the Minutes of Proceedings without the consent and knowledge of the Board of Directors ?
2. When were the alterations made ?
3. Who were the staff members alongside the CEO Mr Bisessur preparing the disbursement documents?
4. Since both Deputy Governors of the Bank of Mauritius, namely Mrs Sewraj-Gopal and Mr Yerukunondu were present at the Meeting of 5^th February 2024 and they are the sole signatories for disbursement, how come they failed to observe  the change in figures they themselves approved ?
5. As per records the Chairman of the MIC, Mr Mark Florman was absent in the meeting of 5^th February 2024 as he was “a zone with limited access to the internet”. In his absence it was Deputy Governor Yerukunondu who was assigned the responsibility of presiding over the meeting . How come the minutes of proceedings have been signed by Mark Florman ?
6. When did Mark Florman sign the minutes of proceedings of the meeting of February 2024?
7. Was it 1 week after the results of the general elections in November 2024 which led to a change in government ?
8. What other documents was Mark Florman compelled to sign ? 

May be the  FCC investigators should be looking into the log of  DiliTrust, the  Board Portal Software of the company , surely the ghost haunting the MIC is resting there.