New Mauritius Central Bank Bill Attacked By Ministers

by Lorys Charalamabous, for Lawandtax-news.com, Cyprus

02 September 2004

Alongside the new Mauritius Banking Bill, which will unify the offshore and onshore banking sectors, is a separate Bank of Mauritius Bill, which has excited controversy over future corporate governance arrangements for the Central Bank.

Section 14 of the Bank of Mauritius Bill provides that in future there will be two Deputy Governors instead of one Managing Director, and that these two worthies will be fully answerable to the Governor, whereas at present the Managing Director has a clear, separate responsibility for day-to-day management of the Central Bank.

Last Friday's cabinet meeting was meant to send the two bills on their way to the legislature for speedy processing before vacations begin later this week, but some ministers objected to what they saw as weakening of the Bank's corporate governance structure - and this in a bill which was meant to strengthen it.

The contracts of the Governor and the two Deputy Governors are set to last for 5 years, with the possibility of renewal. The individuals have to submit statements of their personal assets, and those of their spouses and children. The functions and responsibilities of the Deputy Governors will be determined by the Board of Directors.

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