Lost in the hype surrounding the announcement of a gradual increase in old age pension and E-Soft-Launch of the Tram, the release of the NIC financials served with an exquisite dressing went unnoticed to the majority of people. As usual the country’s main stream newspapers bragged about NIC profits without even trying to look under the gloss. Eccentric Chef Gordon Ramsay would say, “if there is too much sauce, then surely there must be something rotten inside”. In the case of NIC it’s hard not to use the Scottish Chef’s famous “F” word.
We gather, it was upon the express instructions from the Ministry of Financial Services, that impressive figures indicating a successful turnaround had to be depicted. The first and foremost observation would be the fact that the report released relates only to the General insurance company. Camouflaged behind flashy layout, is the need for government to inject 125 million to ensure the sustainability of the company. However this figure looks like petty cash compared to the financial requirements financials of the Life Insurance Company. The minister of Financial Services, who boasts being an accountant of repute, does not find it awkward that financials for the Life insurance have not been disclosed yet. As per the management, the reports are still being scrutinized by the auditors.
Sources within the government stand convinced there serious concerns over the solvency of the Life Insurance company. The company would require an injection of minimum Rs 7 billion as the policies are currently backed by thin air. As a matter of fact, the company expropriated from BAI, following unfounded allegations of wrongdoings, and now belonging to the government, is running a proper full-fledged Ponzi. The Financial Services Commission which had been so aggressive since 2004 over compliance of BAI are now on mute mode.
The design of the Jugnauth government revolves on dressing up the company while hoping to hook up any desperate partner. Plans of massive layoffs have been discussed and would be unfolded once the Jugnauth government’s mandate is renewed. The staggering figure of 50% of personnel to be disembarked has been discussed. However it’s only a matter of time before the patient on artificial ventilation & heavy medical assistance is declared dead.