Mauritius Commercial Bank
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| Type | Limited liability company |
|---|---|
| Industry | Financial Institution |
| Founded | 1838 |
| Founder(s) | Mr. James Blyth |
| Headquarters | 9-15, Sir William Newton Street, Port Louis, Mauritius |
| Area served | Mauritius, Seychelles, Mozambique, Madagascar, Maldives |
| Products | Banking |
| Employees | More than 2,500 |
| Divisions |
Foreign Entities MCB Maldives |
| Subsidiaries |
Local Subsidiaries and Associates GHF Futures |
| Website | www.mcb.mu |
Mauritius Commercial Bank (MCB), founded in 1838, is the oldest and largest banking institution of Mauritius. 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. 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.
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[edit] Services
- MCB has a local network of 40 modern branches and 150 automatic teller machines.
- MCB’s Corporate division offers an extensive range of products and services dealing with local and offshore companies as well as the financing of projects.
- MCB Private Banking offers traditional banking as well as exclusive services to high networth individuals.
- The Group is present in the Seychelles, Madagascar, Mozambique, Maldives and South Africa through a representative office. MCB also operates branches in Reunion, Mayotte and Paris through Banque Française Commerciale Océan Indien, a joint-venture with Société Générale. The MCB Group further participates in key cross-border syndication and risk-sharing arrangements. Its International division offers project financing, trade facilitation and e-commerce enablers. MCB has a SWIFT agreements with over 1,600 partner banks throughout the world.
- The MCB Capital Markets Group MCB Capital Markets provides a wide range of investment-related services through subsidiaries.
- MCBIM is a specialist investment manager for corporate and institutional clients. MCBIM is licensed and regulated by the Financial Services Commission (FSC), the integrated regulator for the non-bank financial services sector in Mauritius, under section 14 of the FSD Act 2001 to conduct asset management and investment advisory services. At 31 March 2010, MCBIM managed a total of Rs 8.6 billion. GHF Futures is a joint venture between GHF Holdings and MCB Capital Markets. GHF Holdings has other trading offices in London, New York, Israel, India, China & Hungary. The company is involved in activities leading to trading in derivatives on exchanges in the UK, US, mainland Europe and all over the world. GHF Futures trades on the five major futures exchanges in the world.
- MCB Group is represented on: facebook, twitter, linkedIn, Youtube and Foursquare.
[edit] MCB Board of Directors as at 2010
- J. Gérard HARDY (President)
- E. Jean MAMET (Vice President)
- Herbert COUACAUD, C.M.G.
- Anil CURRIMJEE
- Bertrand DE CHAZAL
- Philippe Alain FORGET
- Navin HOOLOOMANN, C.S.K.
- Jean Pierre MONTOCCHIO
- Pierre-Guy NOEL
- Antony R. WITHERS
- Margaret WONG PING LUN
SECRETARY TO THE BOARD - Jean-Francois DESVAUX de MARIGNY
[edit] Corporate Social Responsibility
For some years MCB dedicated an amount equivalent to 1% of pre-tax profits to Corporate Social Responsibility (CSR) activities, a ratio that it increased in 2008 to 2% of book profit derived during the preceding year. In April 2008 the bank launched an ‘Appel à Projets’, inviting non-governmental organisations (NGOs) and individuals supported by NGOs to submit projects for consideration for funding. During the fiscal year ending June 2009, the bank spent Rs 30 million on 79 projects. Then in September 2010 MCB formally launched the MCB Forward Foundation, which would develop and support sustainable initiatives for the social, environmental and economic well-being of the community.
[edit] Sustainable development
On 6 March 2009, MCB launched Initiative 175 an ensemble of concerted, sustained and multiple actions in favour of energy saving, renewable energy production and the environment. The Bank will thus over four years until 1 September 2013 articulate initiatives for and by its employees, its customers and, more widely, the general public. Since 19 June 2009, the Bank has fully financed, at a cost of Rs 4.4 million, a series of 26 mini-documentaries entitled ‘Unisvert‘ which is broadcasted weekly on prime time television. While depicting the ecological challenges facing Mauritius, the programme invites the population to be more nature-conscious and to adopt a more ecologically responsible behaviour. In an attempt to reduce the levels of paper waste and attendant littering, balance enquiries at ATMs have been priced at 1 rupee each since 7 July 2009. The result has been both impressive and immediate: 86% of balance inquiries are now consulted on screen, resulting in the reduction of the wasteful abuse of a free service and ATM lobbies looking much cleaner. Additionally, customers have been invited since April 2009 to consider suppressing the printing of their statements of account especially if they opt for Internet Banking. To date, more than 7,000 of them have responded favorably.
[edit] MCB Group Corporate Buildings
- MCB Centre in Port Louis, Mauritius
- MCB Ebène in Saint Jean, Mauritius
- Raymond Lamusse Building, Port Louis
- Caravelle House in Seychelles
[edit] Corporate History
The Mauritius Commercial Bank’s history dates to 1838 when Governor Sir William Nicolay proclaimed the establishment of 'La Banque Commerciale de l'îsle Maurice'. 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. In 1839, Her Majesty Queen Victoria granted a Royal Charter to the newly established bank under the name of 'The Mauritius Commercial Bank'. The charter was renewed every twenty years until 18 August 1955 when the Bank became a limited liability company.
The bank started business with an authorised capital of 100,000 pounds sterling, around 500,000 piastres, in premises situated at rue de Paris, subsequently rue Desforges, Port Louis. Then in 1860 it shifted its activities into an office in rue de l'Eglise, now known as Sir William Newton Street. This is still MCB's registered seat.
MCB opened its first branch in Curepipe in 1920. In 1949, Lloyds Bank became a shareholder. In 1999 Lloyds' shareholding was 10%.
In 1991 MCB opened representative offices in Paris and Antananarivo, Madagascar. Together with Crédit Lyonnais (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 (BFCOI), which is registered in France, with the previous owner, Banque Indosuez, retaining an interest. BFCOI had branches in Réunion Island (9), Mayotte (4) and the Seychelles (1), and a head office in Paris. MCB also established Union Commercial Bank in Antananarivo. 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 a subsidiary in Maputo, Mozambique - União Comercial De Bancos (Moçambique) – 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 and Mayotte 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 and Mayotte in direct competition with BFCOI.
In 2003, MCB and 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.
[edit] Mauritius Commercial Bank / National Pensions Fund Scandal
A few days before 14th February 2003, known afterwards as MCB’s “Black Friday”, Amina Rojoa, the accountant responsible for the NPF deposits file, informed the Prime Minister that the MCB deposits could not be traced. She was subsequently accused of “conspiracy” with retired MCB Chief Manager, Robert Lesage. In a press communiqué, the MCB pinpointed the latter as the mastermind. He was accused of “fraudulently abstracting funds belonging to the MCB” and “tampering with clients’ accounts”. Charged with embezzlement and money laundering, he at once involved the two top MCB bosses.
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. Teeren Appasamy, the alleged master swindler, is connected to the other four - Ravi Ramdewar, his solicitor; former top civil servant, Dev Manraj, his companies’ director; economist Donald Ha Yeung, his agent; and his brother, Tamby Appasamy. They, as well as MCB top bosses, were provisionally charged.
Both Robert Lesage and Teeren Appasamy involved the top management. Pointed out by Teeren Appasamy as his main contact, MCB General Manager on leave, Pierre-Guy Noël, 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”. His deputy, Philippe A. Forget, as file manager of two companies of Teeren Appasamy, was charged with “failing to report a suspicious transaction”. After his arrest and release on bail, charges were changed and then struck out. Another top MCB manager, Thierry Sauzier, was charged with taking a Rs 2 million “bribe”.
Detailed “indictment” was charged by MCB against 38 parties. The most important ones involved were:
Sea Rock Paradise Ltd (1989): The Ha Yeung couple buy shares of Masilamani and Veemlah Veerasamy.
- Angel Beach Resorts Ltd (1987): Teeren Appasamy, Dev Manraj and Donald Ha Yeung’s wife shareholders as from 1997. Ravi Ramdewar, secretary until May 2002. 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.
- Quartet Development Co Ltd (1986): First shareholders: Alain Richard Voon, Donald Ha Yeung, Prithiniah Geerjanand and Mrs Hurkissoon Rambaruth. Geerjanand Khoosman and Sudarshan Bhadain shareholders in 1990.
- Magarian Cie Ltd (1988): Bhardooaz Babeedin and Deochand Nundloll, shareholders. In 1994, Donald Ha Yeung joins in.
- Advance Engineering Ltd (1988): Shareholders: Narainsamy Sadien, Sudeshj Dawoodharry and Danesh Sampathlall.
- Mauri Beach Travel and Tours Ltd (1997): Dev Manraj (also director), Ravi Ramdewar (also secretary), Donald Ha Yeung and his wife (director) shareholders and Renu Manraj one of the directors.
On 30 June 2010, Judges Paul Lam Shang Leen and Nirmala Deva, said that Mr Lesage could not be believed and he was the mastermind behind the scandal that involved Rs880 million fraud at the MCB. The Supreme Court ordered him to refund Rs436 million to the bank. The co-accused and ultimate beneficiary of the fraud was Teeren Appasamy, who was also been ordered by the Supreme Court to pay the bank a sum of Rs305 million. Donald Ha Yeung, was exonerated of all blame by the judges. Robert Lesage appealed to the Privy Council following the judgement by the Commercial Division of the Supreme Court. In July 2011, his appeal was accepted and deliberations are still undergoing.
[edit] Sources
- Mauritius Commercial Bank. 1963. The Mauritius Commercial Bank Limited, 1838-1963. (Port Louis: The Mauritius Commercial Bank).
- Lexpress.mu. 2004. An intricate saga
