The trial of strength between the Mauritius Commercial Bank (MCB) and its former chief manager, Robert Lesage, over the financial scandal that broke out in February 2003, has taken another turn. While each party has been passing the buck to the other for the past year, the MCB now says it has proof that Robert Lesage acted alone. The latter had claimed that he had received instructions from the top management to divert funds from the National Pension Fund (NPF) deposit accounts to grant loans. A statement made under oath to the Independent Commission against Corruption seems to prove this untrue.

All this came back to the surface following a plaint with summons made by the MCB against its insurer, the Mauritius Union Assurance. The latter has so far refused to refund the Rs 881 million embezzled from the NPF deposit accounts to the MCB.

If the bank succeeds in proving that it is not responsible for the fraud, in other words that the top management were never aware of such fraudulent transactions, then it has a chance of being refunded the money that has already been paid back to the NPF. This is precisely their aim and Lesage’s statement seems to have given them a way out.

While the latter previously stated that the general manager, Pierre-Guy Noël, and his deputy, Philippe A. Forget, were well aware of the situation, he seems to contradict himself in his statement to the ICAC. To the question “were you acting under instructions when you first took funds from NPF-NSF fixed deposit accounts?” Robert Lesage answered, “No, I did it on my own initiative.” For the MCB management, things are clear: Robert Lesage made a “confession.”

Yet, the former chief manager also said in his statement to ICAC, “I was fully aware that this use of funds to the detriment of the NPF or any other client for that matter was bound to be illegal. Nevertheless, I agreed to follow the instructions.” However, he admits he has no evidence to prove he really received these instructions. Moreover, he doesn’t specify who gave him the said instructions.

However, Lesage sticks to his stand. His legal entourage maintains that the practice of drawing money from the NPF deposit accounts to replenish holes in other accounts (the Sugar Industry Pension Fund and the Mauritius Union) to help Teeren Appasamy – was known and tolerated by the bank. They said that Lesage’s declaration to ICAC has been quoted out of its context. “It is all very misleading.”

It is not known so far if Pierre Guy Noël, provisionally accused of conspiracy to commit money laundering, will use Lesage’s statement to prove that he was not an accomplice in the crime.

However, one major question remains. If Robert Lesage made such statements to the ICAC, why did it suspect Pierre-Guy Noël and Philippe A. Forget as accomplices in this scandal when it already had confessions from the main suspect, who admitted he had acted on his own initiative?

The consequences of this fraud for the bank’s reputation – and the country’s at large – could have been worse. The MCB finally came out not so badly with measures to review its internal control.

As for Robert Lesage, things are looking more complicated. In view of this statement, he justifies his actions by saying that he acted in good faith. He was convinced, he said, that Teeren Appasamy would repay the loans he had taken from the bank and that he would thus be able to replenish the accounts he had taken the funds from.

The fact that Robert Lesage and even the bank are in the dock should not be surprising since justice has to take its course. However, what appears absurd is the fact that Teeren Appasamy is going on with his quiet life in London. The main beneficiary of the fraud has never been really bothered by ICAC apart from a few questions in London. The extradition plans concerning him have never resulted in anything … Why is it so? This is where the investigation may have to start.

<I>The fact that the bank is in the dock shouldn’t surprise as justice has to take its course. However, what seems more absurd is that Teeren Appasamy is going on with his quiet life in London.</I>