Ministry of Financial Services, Good Governance & Institutional Reforms
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- Government is committed to conducting business on the principles of discipline, transparency, accountability and exemplary governance.
- An open and transparent bidding and procurement process to combat fraud and corruption.
- A transparent and merit-based recruitment and appointment policy to ensure meritocracy.
- An in-depth reform of our public sector institutions to inject productivity, efficiency and quality service.
- A zero tolerance policy against crime and violence. Freeing our society from the shackles of widespread corruption, favouritism, nepotism, mafias and political interference.
- Guaranteeing access to information and broadening of the democratic space.
- Government will relentlessly fight fraud, corruption and financial crime. To that effect, a Financial Crime Commission (FCC) will be set up to act as an apex body to oversee the Independent Commission Against Corruption (ICAC), the Financial Intelligence Unit (FIU) and the enforcement department of the Financial Services Commission (FSC).
- Government will eradicate fraud, corruption, malpractices and irregularities in all aspects of public life and restore our national values. To this end, a new Declaration of Assets Act for MPs and high ranking public officers and a Financing of Political Parties Act will be enacted. A new Code of Conduct will be framed and the entire process of tendering, procurement and contract allocation will be reviewed to increase competition, transparency and accountability for all MPs and public officers.
- The Prevention of Corruption Act will be amended to enable more effective tracking and curbing of money laundering and accumulation of wealth through back door mechanisms.
- The public sector will be re-organised and reformed to make it more productive, transparent, accountable and customer friendly. A Public Sector Efficiency Bureau has already been set up as a department of the newly crafted Ministry of Financial Services, Good Governance and Institutional Reforms.
- Government will give serious consideration to the findings and recommendations of the National Auditors. Ministers, their Accounting Officers, and Directors of parastatals will be held accountable for abuse or misuse of public funds.
- Promote a culture of good governance and integrity reporting in Mauritius;
- Stimulate integrity reporting in the public and private sector;
- Encourage positive reports of acts of good governance and integrity;
- Disclose malpractices and recover unexplained wealth; and
- Protect and reward persons making disclosures and reports.
The Hon. Sudarshan Bhadain, G.C.S.K,
Minister of Financial Services, Good Governance and Institutional Reforms
In December 2014 the people of Mauritius elected a new Government with a landslide majority in Parliament. At that time Mauritius ranked 47 on the Transparency International Corruption Perception Index though for a number of years it has ranked first on the Mo Ibrahim Index of African Governance.
During the electoral campaign the focus was on good governance and the rule of law. What was advocated during the electoral campaign was translated into concrete actions, the first one being the creation of a Ministry exclusively dedicated to Good Governance. This move was followed by the Government Programme 2015─2019 which sets out the tone on the commitments of Government in terms of good governance.
Consistent with its commitments some of the measures proposed in the Government Programme on good governance are as follows:
Government has an unflinching determination to enhance the level of governance at all levels of society and to instil a culture of transparency and accountability. Government recognises the urgent need to provide a conducive climate for sustainable socio economic development and to project Mauritius as a platform for good governance initiatives.
Government House
During the first twelve months no effort has been spared to review the work culture and methodologies for allocation of major contracts by public bodies, resulting in the termination of some contracts and consequential savings for the country.
True it is, that the magnitude of the project is such that the work has to be executed with a sense of priority. It should, however, be noted that the first steps to combat corruption and money laundering in a meaningful way through the Prevention of Corruption Act and the Financial Intelligence and Anti-Money Laundering Act respectively, were taken more than a decade ago. These legislations became the firewall to protect society against the evils of corruption and to project Mauritius as a clean and transparent jurisdiction especially in the wake of our ambition to become an international financial centre of repute.
By 2014 it became clear that the existing legislations were no longer effective to address new challenges and had to be reviewed. Government, conscious of its pledge to the population decided to introduce innovative measures to address in a comprehensive manner the governance issue.
Over the years it has become apparent that there is no fast track process to deal with corruption, money laundering and other financial crimes. Investigations and prosecution tend to become protracted with no guarantee to secure a conviction leading to a sense of frustration. Moreover, it is well known that those who have been convicted of a crime are always likely to enjoy the proceeds of their crime once they are released from jail. Depriving criminals of this possibility was considered to be an interesting option to deter any form of criminal conduct.
In December 2015 Parliament voted the Good Governance and Integrity Reporting Act, the objects of which are to:
Within the remit of this legislation any property which is disproportionate to the income and other emoluments of a citizen of Mauritius may be subject to a confiscation order issued by the Supreme Court of Mauritius. This legislation is a milestone in Government’s endeavour to upscale the level of good governance in the country. The Integrity Reporting Services Agency, as the focal point for receiving disclosures and reports on suspected malpractices, is in the process of being set up. Concurrently, the Integrity Reporting Board which is mandated under the Act to consider reports on unexplained wealth is also being constituted.
Another priority area is the fight against financial and organised crimes which have over the years grown both in numbers and sophistication, thus making them more tedious to detect, investigate and more importantly, bringing the perpetrators to justice.
Currently, all corruption and money laundering related cases are investigated by the ICAC while financial and other related crimes are dealt with by the enforcement branch of the FSC, the Financial Reporting Council and the Police.
In the current Government Programme, Government has pledged to uphold the rule of law and wage a relentless fight against corruption, financial and other crimes. For this to happen, the current model has to be revisited to bring in a collaborative approach that would bring economies of scale and a much needed synergy. Hence the creation of a FCC as an apex body, with the ICAC, the FIU, the enforcement branches of the FSC and the FRC, the Assets Recovery Unit (ARU) and the Anti-Fraud Unit (AFU) operating under its aegis as directorates.
The FCC will be established as an independent body and will operate under the authority of a Board and will be inter alia responsible for investigation into corruption, money laundering, fraud including gaming, investment and land fraud, cybercrimes and other financial crimes.
Pending the creation of the FCC, the ARU which was until recently, operating under the aegis of the Office of the Director of Public Prosecutions has since 26 January 2016 been transferred to operate under the FIU. This is the first step towards bringing more synergy in the fight against financial crimes.
To further good governance, the existing Code of Corporate Governance which is now over 12 years old, is being revisited in consultation with stakeholders to facilitate effective, entrepreneurial and prudent management that can deliver the long term success of organisations. A set of principles and guidance aimed at improving and guiding the governance practices of organisations within Mauritius are enshrined in the Code.
