GlobalCapital chairman resigns, subsidiary under investigation over Ponzi scare

The chairman of GlobalCapital plc, Dawood Rawat, has resigned after shareholder BAI Co. Ltd had to go under the stewardship of a conservator ordered by the financial services commission of Mauritius.

BAI Co. Ltd, which holds 48.45% of the ordinary shares of GlobalCapital plc, is the owner of Bramer Banking Corporation (BBCL), whose licence was revoked over suspicions that it was engaged in a Ponzi scheme.

On 2 April, the Bank of Mauritius revoked BBCL’s licence in the public interest after it said that “conditions prevailing at BBCL pose serious systemic risks to the domestic financial system.”

Trading in shares of BBCL was suspended and its accounts transferred to another bank, after the Mauritius prime minister said there’s “evidence” of a Ponzi scheme.

BBCL, established in Mauritius since 1988, is a subsidiary of British American Investment Co (Mauritius) Ltd through BAI Co (Mauritius) Ltd.

According to FirstPost.com however,  Mauritian prime minister Anerood Jugnauth "is moving ruthlessly to take over private-sector institutions opposed to his crony politics, and has ordered his secret police to harass prominent members of minorities such as Muslims. One such Muslim is Dawood A. Rawat, chairman of the British American Group (BAI)."

The Central Bank pulled Bramer’s license “following strong evidence that BBCL is engaged in a Ponzi scheme which exceeds 25 billion rupees” ($690 million), Prime Minister Anerood Jugnauth told reporters in Port Louis, the capital, last Friday. An investigation is underway into what he called an “unprecedented financial scandal.”

But according to FirstPost.com, no one has accused Bramer of money laundering, and the government “has rather loudly generated a whispering campaign.”

Bramer’s 30,000 deposit accounts will be taken over by State Bank of Mauritius.

The Mauritius financial services commission has been closely monitoring the exposure of BAI Co and appointed Andre Bonieux and Mushtaq Oosman of PricewaterhouseCoopers as conservators of BAI Co in order to safeguard the interest of policyholders. 


The Conservator shall take charge of the business of BAI Co and all of its property, books, records, and effects to preserve, protect and recover any of the assets of the insurer, collect all monies and debts due to it, assert causes of action belonging to the insurer and file, sue and defend suits on its behalf.

In a company announcement issued on a bank holiday, 6 April, GlobalCapital plc announced the Mauritius FSC’s decision to appoint the conservators.

“The business and operations of the GlobalCapital Group are totally separate and distinct from those of any of its shareholders, including BAI, and that the appointment of conservators of BAI does not relate to the business, operations or assets of the GlobalCapital Group,” GlobalCapital said in a statement.

Dawood Rawat has now tendered his resignation from the office of director and chairman of GlobalCapital with Joseph R. Aquilina appointed interim chairman.