Menlo Park Ltd, a company based in Mauritius, has issued a formal notice to the Bank of Mauritius, demanding approximately Rs 900M, equivalent to $19.5M USD. The claim is for commercial and reputational damages allegedly suffered due to actions by the Bank and statements made by Rama Sithanen, the former Governor. Menlo Park asserts that the interventions by the Bank, under Sithanen's leadership, were unlawful and carried out in bad faith.
According to Menlo Park, the actions of Rama Sithanen were contrary to the Bank of Mauritius Act and the constitution of the Mauritius Investment Corporation (MIC). The company disputes the legality of certain nominations, authorizations, and interventions made by Sithanen during his tenure. Menlo Park also criticizes Sithanen for making public accusations of fraud without verifying facts or consulting relevant documents.
Menlo Park claims that Sithanen's actions, including the blocking of its accounts and public accusations of fraud, severely impacted its operations. The company alleges it lost contracts and faced compromised financing and development prospects. Menlo Park asserts that these events significantly damaged its reputation and the value of its business. The company also mentions that Sithanen was aware of its financing request to the MIC before his appointment as Governor.
Menlo Park alleges that Rama Sithanen proposed an arrangement, referred to as the "Sithanen deal," which involved commissions for obtaining financing from the MIC. The company claims it refused this arrangement and subsequently faced retaliatory measures. Tevin Sithanen, associated with One Infinity, is also implicated in these allegations. Both Rama and Tevin Sithanen have publicly denied the accusations.
The formal notice issued by Menlo Park targets the institutional faults attributed to the Bank of Mauritius and the actions and statements of Rama Sithanen during his tenure. Beyond the commercial dispute, this case may expose the central bank to reputational risk. Menlo Park's action is a preliminary step before considering a lawsuit at the Supreme Court.
Menlo Park supports its claims with documents from the MIC and banking records, which allegedly contradict several of Sithanen's public statements. The company argues that the "Sithanen deal" and the subsequent actions against it demonstrate a clear abuse of power and wrongful conduct by Rama Sithanen.
The outcome of this dispute remains to be seen as the allegations and denials are yet to be examined in light of evidence. The Bank of Mauritius and Rama Sithanen have not commented on the specifics of Menlo Park's claims. This case highlights potential issues within the governance and operations of Mauritius' central bank.
Key points
- Menlo Park Ltd demands Rs 900M from the Bank of Mauritius for alleged abuse of power and false accusations by former Governor Rama Sithanen.
