“Parole donnée, parole sacrée”

Ever since the beginning of the BAI saga, in April 2015, after the provoked collapse and crash of the BAI empire operating a so-called Ponzi-like scheme (as termed in the NTan report), the people were reassured on several occasions by the government that the people’s interests will be safeguarded, with their investments fully protected. The government spared no efforts to deploy substantial means through wide media coverage, i.e. TV shows and numerous press conferences to reinforce its commitment to protect the people’s investments which would be given top priority out of the proceeds of the sales of the assets of the crashed BAI Empire.

On each of these occasions, besides the endless political TV shows and conferences to demonise the ex-boss of the BAI empire and the previous regime’s collusion with the latter, the people got increasing hopes, comfort and guarantees that they would recoup their investments. “Parole donnée, parole sacrée” was repeatedly echoed on the various media to comfort the many thousands affected.

It would be worthwhile noting, at this stage, that many members of that government had already removed their investments from the Bramer Bank before the BAI saga started. They had not hesitated, as they said themselves, to escape from the sinking boat which they nevertheless caused to sink further together with its people. No wonder that what followed were a series of broken promises and a total disregard for the people, as if they are the ones to pay for the sins of the owner of the BAI empire.

Broken Promises

Those affected by Bramer Asset Management and the Super Cash Back Gold (SCBG) were mainly people who have made big sacrifices to put aside their hard-earned savings, pension lump sums and retirement packages to invest judiciously in those schemes and earn good returns. And these returns were meant, in the majority of cases, to generate supplementary income to secure quality education for their children, to ensure a comfortable, decent and peaceful life during retirement and most importantly to enjoy a reasonable and deserving comfort after years of hard work without burdening the government resources.

After the crash of the BAI empire in June 2015, the promises were that the people would secure their investments in toto. After a first general refund in June 2015 of up to Rs 500 K, the SCBG clients were made to sign an undertaking that the balance of their investments would be converted into debentures to be paid in five equal instalments on the 30th of June of each year until 2020. There was then no question at all that the refund of these investments would be without the bonus already paid.

On the other hand, the clients of the Bramer Asset Fund were informed of the deduction of 20 % at source, with the balance of their investments to be refunded equally in five equal instalments between 2016 and 2020. It is worthwhile noting here that the debenture certificates, which would confirm the promise given, were never made available to the clients. During one whole year, when these debentures never came, around mid-June 2016, the government, through its then prominent minister of Financial services, never ceased to reiterate the promise given and raised the expectations of the people that he would come with better options.

Thus, the people were hoping that their patience would legitimately be rewarded, more so that the then minister of Financial services was talking of the imminence of improved versions. The persistent rumours of the refund of the investments net of bonus/ interests paid were denied officially and this helped to dissipate the doubts and fears of the people. The affected people built up a lot of faith that at last their pain and sufferings will come to terms and they waited impatiently for the next mediated show for the announcement of the refund. They expected that the improved versions, as widely marketed, would be much better than what was promised a year earlier. The people were expecting to see, at last, the end, a happy end as many of them have genuinely invested to fructify their money for good returns, as any honest and modest investors would do. The people had invested in legal financial products, as approved by the local independent regulators, like the Financial Services Commission (FSC) and Financial Reporting Council (FRC), and in firms soundly audited. Needless to mention that in the year 2011, upon a question in the National Assembly by Paul Bérenger, the then leader of the opposition, the then minister of Finance reassured the Assembly of the robustness of the BAI as a company to fulfil its obligations despite unfavourable audit observations made at the time. The FSC and FRC found nothing to say and their silence only strengthened the position of the BAI to continue with its promotion to push more and more of its established products as baits to the many people who were on the look-out for better returns on their investments.

People’s disillusionment

When the then minister of Financial services, in his TV show of Thursday 24 June 2016, announced the immediate full refund, inclusive the bonus paid to all SCBG clients who have invested less than a million rupees and immediate refund to the Bramer Asset fund clients, it was a relief for this category of investors. But in the case of those modest and honest SCBG clients who have invested a million and more rupees, the pills were hard to swallow, the promise has clearly not been kept.

Contrary to the other categories, these 4 000 or so clients were not only NOT being refunded immediately, but were faced with two options which were significantly worse than what was promised only the year before. This time, contrary to the category of investors with less than a million, they will only get their investments in five instalments UP TO 2020 but WITHOUT BONUS PAID or after deduction of 25 %, with half of the balance paid end June 2016 and the other half converted into shares in the National Property Fund Limited (NPFL), matured in 2019. In fact, the latter category was made to sign a document that the balance was only held at the NPFL to be recouped in 2019, without any mention whatsoever of the conversion of that sum into redeemable shares earning potential dividends, which people were made to believe.

Now, after the hunger strike of representatives of the affected people and the promise that a solution would be found for the people to recoup their investments at one go, this year itself, without having to wait until 2019 or 2020, the people are still not at the end of their trauma. The proposed formula for a further cut of 50-70 % of their investments, except for those with up to Rs 200 000, plunges the people into further disillusions. The people seem to pay for the sins of others. The people seem to pay the price of a political tug of war with the endured stress of the affected people not being considered and cared for.

People are in pain

On Sunday 18 June 2017, after two years of the provoked crash of the BAI empire at Belle-Rose, where the above formula of the government was presented, the people are still in a state of shock. This was apparent. Many were in tears, some lost in their thoughts whilst many were visibly expressing out their feelings of anger and disappointment. The emotions were so intense and the atmosphere very tense.

The situation warrants a compassionate approach to search for mutually agreeable solutions which will pacify these affected honest people in the most emotionally intelligent manner. It is through these tough moments and rough passages to relieve the pain of the people that we come to appreciate the quality of leadership of this country.