Firm Claims Rs 900 Million from Bank of Mauritius Over Blocked Accounts

A Mauritian company has issued a formal legal demand against the Bank of Mauritius, claiming approximately Rs 900 million, equivalent to 19.5 million US dollars, in damages for what it describes as unlawful interference with its business operations and reputation.

Menlo Park Ltd served the mise en demeure, a formal pre-litigation notice under Mauritian law, on the central bank. The notice targets actions attributed to Rama Sithanen, who served as Governor of the Bank of Mauritius in a recent administration. Sithanen is a prominent economist and former Finance Minister who was appointed to lead the Bank of Mauritius under the previous government.

In its notice, Menlo Park alleges that Sithanen's interventions were carried out illegally, in bad faith, and in breach of the Bank of Mauritius Act. The company also argues that his actions went beyond what is permitted under the constitution of the Mauritius Investment Corporation, known as the MIC. The MIC is a special-purpose vehicle created by the Bank of Mauritius in 2020 to invest in strategic sectors of the Mauritian economy using central bank reserves.

A central grievance in the notice concerns the blocking of Menlo Park's bank accounts. The company argues that this measure, combined with public statements made by Sithanen that it characterises as false and defamatory, caused severe disruption to its commercial activities. Menlo Park says it lost contracts as a direct result and suffered lasting reputational damage.

The company further accuses Sithanen of making public allegations of fraud without first verifying the relevant facts or documents. Menlo Park states it holds documents from the MIC and banking records that it says contradict several of those public claims.

The Rs 900 million demand covers both commercial losses and reputational harm, according to the notice.

What this means: A mise en demeure is not a court ruling or a finding of wrongdoing. It is a formal step that typically precedes litigation, putting the recipient on notice of a legal claim and giving them an opportunity to respond. The Bank of Mauritius will now need to decide how to respond to the demand. If no settlement is reached, Menlo Park could proceed to file a case before the Mauritian courts. The outcome of any such proceedings would determine whether the claims against the central bank and Sithanen are upheld.

This case adds to broader scrutiny of decisions made during the previous government's tenure, including the role and governance of the MIC, which has faced questions from opposition politicians and civil society since its creation.

Source: ION News