Mauritius Commercial Bank (MCB) is a
commercial bank
A commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit.
It can also refer to a bank, or a division of a large bank, which deals with cor ...
in
Mauritius
Mauritius ( ; french: Maurice, link=no ; mfe, label=Mauritian Creole, Moris ), officially the Republic of Mauritius, is an island nation in the Indian Ocean about off the southeast coast of the African continent, east of Madagascar. It incl ...
. MCB is licensed by the
Bank of Mauritius
The Bank of Mauritius (french: Banque de Maurice) is the central bank of the Republic of Mauritius. It was established in September 1967 as the central bank of Mauritius. It was modelled on the Bank of England and was, in effect, set up with th ...
, the country's
central bank
A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union,
and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...
and the nation's banking regulator. The bank's headquarters are located in
Port Louis
Port Louis (french: Port-Louis; mfe, label= Mauritian Creole, Polwi or , ) is the capital city of Mauritius. It is mainly located in the Port Louis District, with a small western part in the Black River District. Port Louis is the country's ec ...
, Mauritius.
Overview
Mauritius Commercial Bank, founded in 1838, is the oldest and largest banking institution of
Mauritius
Mauritius ( ; french: Maurice, link=no ; mfe, label=Mauritian Creole, Moris ), officially the Republic of Mauritius, is an island nation in the Indian Ocean about off the southeast coast of the African continent, east of Madagascar. It incl ...
. It is also the oldest banking institution south of the Sahara and one of the oldest banks of the Commonwealth to have preserved its original name. MCB has a local network of 40 modern branches and 150
ATMs.
The holding structure of the MCB Group translates its two-fold strategy namely diversification into financial services through local subsidiaries and associated companies and regional expansion through its foreign subsidiaries. MCB operates in Madagascar, Maldives, Mozambique and Seychelles. The Group has also consolidated its presence in Réunion, Mayotte and Paris through BFCOI, its associate. The MCB opened a representative office in Johannesburg, South Africa in 2008. Moreover, the Group is actively involved in project and trade financing in various countries of the sub-Saharan region, while being engaged in other markets such as India.
History
The beginning
The Mauritius Commercial Bank’s history started on September 1, 1838 when Governor Sir
William Nicolay
Lieutenant General Sir William Nicolay (14 April 17713 May 1842) was a British Army officer present at the Battle of Waterloo who later became Governor of Mauritius.
He was the sixth son - not the third -
Life
He was the third son of Frederick ...
proclaimed the establishment of ''La Banque Commerciale de l'îsle Maurice'' in
Port Louis
Port Louis (french: Port-Louis; mfe, label= Mauritian Creole, Polwi or , ) is the capital city of Mauritius. It is mainly located in the Port Louis District, with a small western part in the Black River District. Port Louis is the country's ec ...
. The bank was an initiative by a group of traders of the capital, headed by Mr. James Blyth and Mr. William Hollier Griffiths, who wanted to establish an alternative to the Bank of Mauritius, which they felt favoured the planters on the island. The bank started business with an authorised capital of £100,000, around 500,000 piastres, in premises situated at rue de Paris, subsequently rue Desforges, now Sir Seewoosagur Street.
In 1839,
Queen Victoria
Victoria (Alexandrina Victoria; 24 May 1819 – 22 January 1901) was Queen of the United Kingdom of Great Britain and Ireland from 20 June 1837 until Death and state funeral of Queen Victoria, her death in 1901. Her reign of 63 years and 21 ...
granted a Royal Charter to the newly established bank under the name of The Mauritius Commercial Bank (MCB). The British government renewed the charter every twenty years until 18 August 1955 when the Bank became a limited liability company.
The early years
MCB encountered numerous difficulties in its first hundred years. MCB opened its first branch in
Curepipe
Curepipe () also known as ''La Ville-Lumière'' (The City of Light), is a town in Mauritius, located in the Plaines Wilhems District, the eastern part also lies in the Moka District. The town is administered by the Municipal Council of Curepipe. ...
, in the centre of the island, in 1920. It did not open another branch until after
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
.
Post-war growth
In 1949,
Lloyds Bank
Lloyds Bank plc is a British retail banking, retail and commercial bank with branches across England and Wales. It has traditionally been considered one of the "Big Four (banking), Big Four" clearing house (finance), clearing banks. Lloyds B ...
became a shareholder. In 1955, MCB became a limited liability company. At this point MCB became the first bank to set up branches in rural locations:
Mahébourg
Mahébourg is a small town on the south-eastern coast of the island of Mauritius, having a population of 15,457 as of 2015.Digest of Demographic Statistics 2015; Available at http://statsmauritius.govmu.org/English/Pages/POPULATION--And-VITAL-STAT ...
in 1955,
Flacq
Flacq () is a district of Mauritius, situated in the east of the island. It is the largest district, having an area of 297.9 km², the population estimate was at 138,460 as at 31 December 2015.
Places of interest
The small village of Trou ...
in 1958,
Triolet
A triolet (, ) is almost always a stanza poem of eight lines, though stanzas with as few as seven lines and as many as nine or more have appeared in its history. Its rhyme scheme is ABaAabAB (capital letters represent lines repeated verbatim) and ...
in 1959, and
Goodlands in 1963. Other branches followed. In 1960, MCB bank moved to the current location of its headquarters at Sir William Newton Street (at the time, Rue de l'Eglise). Mauritius achieved its independence in 1968.
A regional leader
MCB began its international expansion in 1991 when it opened representative offices in Paris and
Antananarivo
Antananarivo ( French: ''Tananarive'', ), also known by its colonial shorthand form Tana, is the capital and largest city of Madagascar. The administrative area of the city, known as Antananarivo-Renivohitra ("Antananarivo-Mother Hill" or "An ...
,
Madagascar
Madagascar (; mg, Madagasikara, ), officially the Republic of Madagascar ( mg, Repoblikan'i Madagasikara, links=no, ; french: République de Madagascar), is an island country in the Indian Ocean, approximately off the coast of East Africa ...
. Together with
Crédit Lyonnais
The Crédit Lyonnais (, "Lyon Credit ompany) was a major French bank, created in 1863 and absorbed by former rival Crédit Agricole in 2003. Its head office was initially in Lyon but moved to Paris in 1882. In the early years of the 20th cent ...
(40%) and Banque de la Réunion (a subsidiary of Crédit Lyonnais-25%), MCB (35%) established Banque Internationale Des Mascareignes, an offshore unit based in Mauritius. (In 1998 Crédit Lyonnais confirmed the transfer to Caisse d'Épargne Provence-Alpes-Corse (CEPAC) of its remaining shares (25.5%) in Banque internationale des Mascareignes.) The next year, MCB became the majority shareholder of
Banque Française Commerciale Océan Indien Banque Française Commerciale Océan Indien (BFCOI) is a French bank that since 2003 has been jointly owned by Mauritius Commercial Bank and Société Générale. It has its headquarters in Saint Denis, Réunion. It has more than 360 employees and ...
(BFCOI), which is registered in France, with the previous owner,
Banque Indosuez
Banque Indosuez was a French bank, the product of the 1975 merger of Banque de l'Indochine and Banque de Suez et de l'Union des mines. It was purchased by Crédit Agricole in 1996, and formed the core of what is now Crédit Agricole Corporate an ...
, retaining an interest. BFCOI had branches in
Réunion
Réunion (; french: La Réunion, ; previously ''Île Bourbon''; rcf, label= Reunionese Creole, La Rényon) is an island in the Indian Ocean that is an overseas department and region of France. It is located approximately east of the island ...
Island (9),
Mayotte
Mayotte (; french: Mayotte, ; Shimaore: ''Maore'', ; Kibushi: ''Maori'', ), officially the Department of Mayotte (french: Département de Mayotte), is an overseas department and region and single territorial collectivity of France. It is loc ...
(4) and the
Seychelles
Seychelles (, ; ), officially the Republic of Seychelles (french: link=no, République des Seychelles; Creole: ''La Repiblik Sesel''), is an archipelagic state consisting of 115 islands in the Indian Ocean. Its capital and largest city, V ...
(1), and a head office in Paris. MCB also established
Union Commercial Bank in
Antananarivo
Antananarivo ( French: ''Tananarive'', ), also known by its colonial shorthand form Tana, is the capital and largest city of Madagascar. The administrative area of the city, known as Antananarivo-Renivohitra ("Antananarivo-Mother Hill" or "An ...
. The original shareholders were MCB (70%), Standard Bank Investment Corporation Ltd (10%), BFCOI (10%), FIARO (5%) and Société Manofi (5%). By 2000, MCB's share ownership had risen to 79%. Currently, the bank has three branches. Then in 1992 MCB converted its representative office in Paris to a branch.
In 1999 MCB established União Comercial De Bancos (Moçambique) in
Maputo
Maputo (), formerly named Lourenço Marques until 1976, is the Capital city, capital, and largest city of Mozambique. Located near the southern end of the country, it is within of the borders with Eswatini and South Africa. The city has a popul ...
,
Mozambique
Mozambique (), officially the Republic of Mozambique ( pt, Moçambique or , ; ny, Mozambiki; sw, Msumbiji; ts, Muzambhiki), is a country located in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi ...
in partnership with BFCOI and Proparco. By 2000 MCB's shareholding was 76% as it had bought out Proparco's 18.75% stake. The next year, MCB acquired the minority stake
Crédit Agricole Indosuez held in BFCOI, increasing its own stake by 22.22% to 88.88%. This followed the takeover of Banque Indosuez by the Crédit Agricole Group, which itself had operations in both
Réunion
Réunion (; french: La Réunion, ; previously ''Île Bourbon''; rcf, label= Reunionese Creole, La Rényon) is an island in the Indian Ocean that is an overseas department and region of France. It is located approximately east of the island ...
and
Mayotte
Mayotte (; french: Mayotte, ; Shimaore: ''Maore'', ; Kibushi: ''Maori'', ), officially the Department of Mayotte (french: Département de Mayotte), is an overseas department and region and single territorial collectivity of France. It is loc ...
in direct competition with BFCOI.
MCB acquired the minority stake
Crédit Agricole Indosuez held in BFCOI, increasing its own stake by 22.22% to 88.88%. This followed the takeover of Banque Indosuez by the Crédit Agricole Group, which itself had operations in both
Réunion
Réunion (; french: La Réunion, ; previously ''Île Bourbon''; rcf, label= Reunionese Creole, La Rényon) is an island in the Indian Ocean that is an overseas department and region of France. It is located approximately east of the island ...
and
Mayotte
Mayotte (; french: Mayotte, ; Shimaore: ''Maore'', ; Kibushi: ''Maori'', ), officially the Department of Mayotte (french: Département de Mayotte), is an overseas department and region and single territorial collectivity of France. It is loc ...
in direct competition with BFCOI.
In 2003, MCB and
Société Générale
Société Générale S.A. (), colloquially known in English as SocGen (), is a French-based multinational financial services company founded in 1864, registered in downtown Paris and headquartered nearby in La Défense.
Société Générale ...
agreed that they would split the ownership of BFCOI. However, the agreement did not include BFCOI's operations in the Seychelles. MCB therefore incorporated a new fully owned subsidiary, Mauritius Commercial Bank (Seychelles) – MCB Seychelles – to take over BFCOI's operations there.
Group reorganization
Since its regional expansion, MCB operated as both a licensed bank and a holding company. In 2013, MCB embarked on a reorganization that sought to separate the banking and non-banking operations and raise capital in order to position itself for future growth. The restructure was as follows:
*
MCB Group Limited was incorporated to be the ultimate holding company in the group.
* Shareholders of MCB exchanged their MCB shares for MCB Group shares on a 1:1 ratio. These shares were then listed on the SEM.
* MCB Investment Holding Ltd (MCBIH) was then incorporated to act as the intermediary holding company of all the banking investments of the Group.
* MCB's entire stock was transferred from MCB Group to MCBIH in exchange for shares.
* The Banking subsidiaries held by MCB were then unbundled to MCBIH while non-banking subsidiaries and investments were unbundled MCB Group.
At the end of the reorganization, MCB remained a commercial bank with no subsidiaries while MCB Group's structure operated under three clusters, i.e.:
# Banking
# Non-banking financial
# Other investments
Ownership
The shares of MCB were listed on the
Stock Exchange of Mauritius
The Stock Exchange of Mauritius (SEM) (french: Bourse de Maurice); is an organization responsible for the operation of Economy of Mauritius, Mauritius's primary stock exchange located at Port Louis. The SEM operates two markets: the Official Marke ...
from 1989 to April 5, 2014 when they were replaced by those of MCB Group. Mauritius Commercial Bank is currently a wholly owned subsidiary of MCB Group.
Governance
Mauritius Commercial Bank is governed by an eight-person Board of Directors with J. Gérard HARDY serving as the President of the board and Pierre Guy NOEL as the CEO.
Moody's Ratings
* Foreign Currency Deposit Baa1/P-2
* Foreign Currency Issuer Baa1
* Global Local Currency Deposit Baa1/P-2
* Bank Financial Strength D+
* NSR Senior Debt - MTN Program (foreign currency) Aa3.za
* NSR Subordinated Debt - MTN Program (foreign currency) A3.za
Controversy: Mauritius Commercial Bank / National Pensions Fund Scandal
Early in February 2003, Amina Rojoa, the accountant responsible for the National Pensions Fund (NPF) deposit accounts, informed Prime Minister Sir Anerood Jugnauth, that the NPF deposits at the MCB could not be traced. On 14 February 2003, known afterwards as MCB's "Black Friday," the Mauritius Commercial Bank announced in a press communiqué that it had discovered a large scale fraud which had resulted in the misappropriation of over Rs. 600 m. between 1991 and 2002. The fraud was alleged to have been committed by one of the bank's senior managers, Robert Lesage. He was accused of “fraudulently abstracting funds belonging to the MCB” and “tampering with clients’ accounts. The MCB started proceedings in Mauritius against Lesage and thirty seven defendants. The most important ones involved were:
*Angel Beach Resorts Ltd (1987): Teeren Appasamy, Dev Manraj and Donald Ha Yeung’s wife shareholders as from 1997. Teeren Appasamy and Marc Daruty de Grandpré directors since August 2001.
*Belle Beach Ltd: Teeren Appasamy, sole director.
*Handsome Investment Ltd (1991): Shareholders: Donald Ha Yeung & Mrs. Pit Ho Wong Ching Hwai.
*Magarian Cie Ltd (1988): Bhardooaz Babeedin and Deochand Nundloll, shareholders. In 1994, Donald Ha Yeung joins in.
*Mauri Beach Travel and Tours Ltd (1997): Dev Manraj (also director), Donald Ha Yeung and his wife (director) shareholders and Renu Manraj one of the directors.
*Quartet Development Co Ltd (1986): First shareholders: Alain Richard Voon, Donald Ha Yeung, Prithiniah Geerjanand and Mrs Hurkissoon Rambaruth. Geerjanand Khoosman and Sudarshan Bhadain (
Roshi Bhadain
(Roshi) Sudarshan Bhadain (GCSK) (born 25 April 1971) is a Mauritian politician
Education and Professional career
Roshi Bhadain completed his secondary education at Royal College Curepipe before studying law at University of Bristol. He also stu ...
) became shareholders in 1990. The latter had claimed that without his knowledge shares in Quartet were put in his name while he was a student and to which he never consented.
*Sea Rock Paradise Ltd (1989): The Ha Yeung couple buy shares of Masilamani and Veemlah Veerasamy.
The
Independent Commission Against Corruption (ICAC) accused NPF accountant Rojoa of conspiracy with Lesage. Charged with embezzlement and money laundering, Lesage involved two top managers of the MCB. He was later granted immunity by the Independent Commission Against Corruption (ICAC). Attempts were made to challenge the immunity since it had not been granted or confirmed by the Director of Public Prosecution. As the investigation unfolded, ICAC identified the main beneficiary as London-based Mauritian businessman Teeren Appassamy. Money was credited to accounts of ten companies and five persons including Appassamy, the alleged master swindler. They are Dev Manraj, his companies’ director; economist Donald Ha Yeung, his agent; and his brother, Tamby Appasamy. They, as well as MCB top managers, were provisionally charged.
Teeren Appasamy pointed MCB General Manager, Pierre-Guy Noël, as the banker he had dealings with. The latter was charged of having “willfully and criminally conspired with Robert Lesage and Teeren Appasamy to engage in several transactions involving a sum of Rs 36 million”. This charge was later struck out on a technicality. MCB's Assistant General Manager, Philippe A. Forget was charged with “failing to report a suspicious transaction” as file manager for two companies of Teeren Appasamy. Philippe Forget, also a major shareholder of the prominent newspaper
L'Express (Mauritius)
''L'Express'' is a French-language daily newspaper, published in Mauritius since 1963 and owned by La Sentinelle, Ltd. ''L'Express'' endeavours to cover Mauritian news in an independent and impartial manner, as described in its code of conduct for ...
, was arrested and released on bail. Charges against Forget were eventually changed and then struck out.
The fraud action was soon followed by a claim by MCB in Mauritius against Mauritius Union Assurance (MUA) under its insurance policies. MUA in turn claimed against its reinsurers, Dornoch Ltd., and others. On 19 January 2005 the reinsurers rejected MUA's claim because of negligent misstatement, non-disclosure, and deceit. They later served proceedings against MUA and MCB. The allegations of misrepresentation made against MUA and MCB were "based upon answers given in a Lloyds bankers policy proposal form signed by officers of MCB to the effect that it was a well run orthodox banking business when in fact it was nothing of the sort." MUA and MCB appealed to the Supreme Court of the United Kingdom, and their appeal was dismissed.
In March 2005, a report by NTan Advisory Corporate (Singapore) was published in
Le Mauricien
''Le Mauricien'' is a French-language newspaper, based and distributed in Mauritius. The newspaper, founded in 1908, is released daily and is one of the most read in Mauritius. The publishers, Le Mauricien Ltd., also publish ''Week-End'', ''Week ...
. The report commissioned by the
Bank of Mauritius
The Bank of Mauritius (french: Banque de Maurice) is the central bank of the Republic of Mauritius. It was established in September 1967 as the central bank of Mauritius. It was modelled on the Bank of England and was, in effect, set up with th ...
, outlined unlawful banking practices at the Mauritius Commercial Bank.
In October 2008, after reviewing evidence gathered by ICAC, the Director of Public Prosecution Gérard Angoh decided not to retain criminal charges against Lesage.
In September 2009, ICAC initiated criminal action against the Mauritius Commercial Bank, as a corporate entity represented by Pierre-Guy Noël. MCB was charged to "wilfully, unlawfully and criminally fail to take such measures as are reasonably necessary, to wit : implementation of proper internal control systems and procedures, to ensure that services offered by it, to wit : in relation to the fixed deposit accounts held on behalf of the National Pensions Fund, were not capable of being used by a person to facilitate the commission of a money laundering offence.
On 30 June 2010, in the civil action brought about by MCB against Lesage and others, Judges Paul Lam Shang Leen and Nirmala Devat of the Commercial Division of the Supreme Court, found that Lesage could not be believed and held him liable for the Rs 880 million fraud at the MCB. The justices ordered him to refund Rs 436 million to the bank. The co-defendant and ultimate beneficiary of the fraud, Teeren Appasamy, was ordered by the Court to pay the bank a sum of Rs 305 million. Donald Ha Yeung, was exonerated of all blame by the judges. Lesage appealed to the Supreme Court of Mauritius, but his appeal was denied on a technicality. He then appealed directly to the
Judicial Committee of the Privy Council
The Judicial Committee of the Privy Council (JCPC) is the highest court of appeal for the Crown Dependencies, the British Overseas Territories, some Commonwealth countries and a few institutions in the United Kingdom. Established on 14 Augus ...
in London, UK, the highest court of appeal. On Dec. 20, 2012, Lord Kerr and four other Law Lords allowed Lesage's appeal, quashing the decision of the Supreme Court of Mauritius and ordering a new trial "free from the taint of unfairness and bias" before a differently constituted court.
Judges Paul Lam Shang Leen and Nirmala Devat of the Commercial Division of the Supreme Court, also found out that "those shell companies were nothing more than his conduit pipe and transactions effected without the knowledge of those who on paper were either shareholders or directors. Those companies were simply the instrument/facade to enable Mr. T. Appasamy to obtain huge sums from Mr. Lesage. As can be gleaned from the evidence of Mr. PG Noel, most if not all the monies, which had reached those shell companies, had practically been directed either to the various accounts of Mr. T.Appasamy or for his benefits."
[JUDGEMENT MAURITIUS COMMERCIAL BANK LTD v MR ROBERT LESAGE AND ORS 2010 SCJ 222 SCR Nos. 81369 and 84018]
Court hearings in the case of ICAC v MCB have begun on Sept. 26, 2011.
See also
*
List of banks in Mauritius
This is a list of commercial banks in Mauritius.
See also
* Bank of Mauritius
* List of companies of Mauritius
* List of banks in Africa
References
External linksDetails view on the banks of Mauritius, offers & special services
{{Economy of ...
References
Sources
* Mauritius Commercial Bank. 1963. ''The Mauritius Commercial Bank Limited, 1838-1963''. (Port Louis: The Mauritius Commercial Bank).
Moorlah, S. Barbé, A., Lutchmaya, J. "Corruption : Interpellés par l'ICAC, Ramdewar et Sauzier libérés sous caution" in lexpress.mu (May 17, 2003). Cf.Lexpress.mu. 2004. ''An intricate saga''*
ttps://web.archive.org/web/20160304222109/http://www.pluriconseil.com/publication/En%20quete%20de%20verite.pdf Ng Ping Cheun, E. "En quête de vérité" in Business Magazine (March 30, 2005)"Dornoch Ltd & Ors v Mauritius Union Assurance Company Ltd [2006APP.L.R. 04/10" in Arbitration, Practice & Procedure Law Reports. Typeset by NADR. Crown Copyright reserved. [2006">006">"Dornoch Ltd & Ors v Mauritius Union Assurance Company Ltd [2006
APP.L.R. 04/10" in Arbitration, Practice & Procedure Law Reports. Typeset by NADR. Crown Copyright reserved. [2006EWCA Civ 389 6]
MCB Press release (March 16, 2006)
*
ttp://www.lemauricien.org/weekend/090906/fd.htm "MCB/NPF : l'heure de grandes tractations!" in Week End (Sept. 6, 2009)
Modeliar S. "Mauritius Commercial Bank Ltd v Robert Lesage and Others’ The cat is still in the bag!" in Mauritius Times (July 8, 2010)Modeliar S. "N’Tan Report Revisited" in Mauritius Times (July 20, 2010)"Affaire ICAC vs MCB" in Le Mauricien (Sept. 26, 2011)
{{Authority control
Banks of Mauritius
Companies listed on the Stock Exchange of Mauritius
Companies based in Port Louis
Banks established in 1838
1838 establishments in Mauritius