Those who have lost their properties through seizures and sale because they couldn’t pay their debts have cause to believe their plight might soon be looked after. The Prime minister, Navin Ramgoolam, met the victims in his office last week to listen to their complaints. He is aware the whole system should be reviewed but he does not look really convinced by the idea of replacing the present enquiry by a Truth and Reconciliation Commission based on the South African model. He however made it clear he did not find it normal that sale by levy is the solution in every case.

The PM also seized the opportunity to announce temporary measures to alleviate the victims’ problems. He requested the National Housing Development Company to suspend eviction procedures against bad debtors. A counter has also been set up at the Line Barracks to assist those who have complaints. The PM expressed his wish for a quick solution : “The more time we take, the more victims there will be.”

The meeting should have consequences in the legal field as well. The attorney general, Rama Valayden, will have to review his project of a Credit Facilities Bill in view of the information they had during the meeting. Navin Ramgoolam made it clear that he wanted borrowers to be more protected.

More protection for borrowers

The PM also thinks the system of debt repayment will have to be reviewed. “Giving them more time to pay will not solve the problem because interest increases as well.”

The “defender” of the sale by levy victims, Harish Boodhoo, expressed his satisfaction with the meeting held by the prime minister. But he quickly added. “A first battle has been won. But the struggle is not over yet.” To make sure the PM keeps his commitment to help the victims, Harish Boodhoo issued an ultimatum. He said he would take to the streets and protest before the Supreme Court if the PM did not take the necessary steps to ask para-statal banks to freeze procedures for the seizure of properties before 18th September.

He made it clear that he was fed up with promises that are not kept. For him, the sale by levy commission did not meet expectations, as there was no real follow-up afterwards. Even though the PM did not reply to these “threats”, he insisted that his government would not act like the former one that left the “useful report of the commission in the drawer since November 2004”.

<B>Lawyers in the dock…</B>

The judicial sector seems to have three solicitors and one notary in its sights in the context of sale by levy. The latter are often called upon by financial institutions that provide loans to their clients when the latter can’t repay their debts. They are supposed to start the procedure for the sale by levy if the debtor can’t repay and can’t even start negotiations. But some of them are suspected of asking for huge amounts of money to postpone the case and work in league with financial institutions. Others are even suspected of being illegal “brokers”. The first to be provisionally charged last week was notary Brian Chung King Sow; he was charged with embezzlement and issuing bad cheques. The attorney general, Rama Valayden, wrote to the chief justice to ask him to take sanctions against him. Besides the charges, Rama Sithanen wants to know how one of his clients gave him Rs 1,8 million for the purchase of a plot of land in Le Morne when no registration or transcription of deed has been done. The suspect has however denied all accusations so far.Two solicitors – Iqbal Dauhoo and Afzal Agowan – were also referred to the court to see whether there is anything wrong or illegal in their roles in sale by levy cases. Rama Valayden made it clear that these sanctions come after he had listened to the complaints of victims and opened enquiries. The permanent secretary (PS) of the ministry of Foreign Affairs, Soobaha Fowdur, against whom there have been three statements to the police, has expressed his desire to go on early retirement after allegations that he was an illegal “broker” cropped up. This is not the first time his name has been mentioned in sale by levy cases but his lawyer is adamant that his client “has no reason to reproach himself. We are confident about what will happen next”.