The Minister of Good Governance, Roshi Bhadain, maintains that the BAI had formulated a Ponzi Scheme. During a press conference, he revealed some shocking happenings.
The Minister of Good Governance, Roshi Bhadain, maintains that the BAI had formulated a Ponzi Scheme. During a press conference on the 13th of April, he revealed to the public that Super Cash Back Gold was at the heart of the matter.
He has explained that the BAI has all the characteristics of operating on a Ponzi Scheme. One of its features is that clients are promised high interest rates on their investments, and convinced that only negligible risk is involved. Eventually, the old investors are paid with the money given by new investors. Therefore, new investors have to be attracted all the time. Super Cash Back Gold is accused of working similarly. The minister argued that it was not popular before 2007, but that it has met success just after that.
Roshi Bhadain stated that the figures increased to a great extent thanks to an aggressive marketing campaign by the BAI.
The insurance policy obtained around Rs 19 billion over the years, and this was injected into its subsidiary groups. According to Roshi Bhadain, a large fraction of the money was invested in other firms or in foreign groups, in Croatia and Italy, amongst others.
Therefore, according to the minister, the money generated by Super Cash back Gold was used by the BAI to keep the other subsidiary groups on the market. The commercial success of Super Cash Back Gold has allegedly ensured that money keeps flooding into the coffers of the subsidiaries.
The minister also denounced the company of manipulating the figures to create an appearance of great profits. He is reported to have exclaimed: “Si sa pa enn Ponzi Scheme, abe ki été enn Ponzi Scheme ?”
Another shocking statement that was made involved the money of the insured parties being used for the purchase of the Roches-Noires private bungalow of the ex-PM, Navin Ramgoolam. Bramer Bank had allegedly loaned Rs 40 million to the latter on the 15th of December 2010 after he obtained a guarantee from BAI.