The Bank of Mauritius’ Governor asks the vice- president of a bank to vacate his office on the 6th floor, leaks to the press allegations that loans have been granted to people who shouldn’t have been granted them… what’s happening at the First City Bank?

It all started with leaks to the press about two companies owned by Yacoob Maghoo, son of an MMM activist, Abu Maghoo. One of the directors of the companies also happens to be Dharamveersing Roopun, former Deputy Speaker of the MMM-MSM government. The leaks point the finger of suspicion at the CEO of the bank, Rohit Auckle. The disturbing thing is that Harry Sookun, vice chairman and owner of 39% of the shares of the FCB was the one who introduced the Maghoos to the bank. And it is generally believed that Sookun is behind the leaks, hence the order to vacate the premises “with immediate effect” from the BOM.

Why would Sookun advertise the fact that his friends received favours from the bank? One doesn’t know. In any event, it seems the two companies were thought to be non-performing accounts. And rumours say that despite advice to refuse the granting of the loan by the Credit Officer, loan was granted.

It seems however that loan granting is only an excuse to cause havoc at the bank. Those close to CEO Auckle say Sookun is doing all this because he wants control of the bank. “He wants to replace Auckle with his people and he has set his sight on the office of chairman.” Says a bank official. Sookun himself never hid his frustration. “I own 39% of the shares but I have neither power nor influence,” he is quoted to have said.

The deadline is looming

But the 39% shareholding will become illegal on the 1st of December. When Sookun acquired the bank in 2002 together with the Development Bank of Mauritius (DBM) and the State Investment Corporation (SIC), he was granted derogation by the BOM, who allowed him to purchase 39% of the shares on the condition that he would dilute them to the legal limit of 10% by December 2005. And the deadline is looming…

Is it just a matter of ambition and desire for power on Harry Sookun’s part? Or is there more to the story? Is Sookun his own agent or is there someone pulling the strings? In any event, the minister of finance has announced an independent commission of inquiry to shed some light on the sordid affair. What will government find? Will they share the findings?