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NEWS & CURRENT AFFAIRS

The Nairobian

Britam drops 2 directors linked to scam

Business

By Moses Michira | Apr 28, 2015

Former Director Dawood Rawat. Rawat along with his nephew Moussa formally resigned yesterday.

Two directors of Britam have resigned to disentangle the company from claims of mega fraud the duo have been linked to in Mauritius. Dawood Rawat and his nephew Moussa formally resigned yesterday, according to Britam’s announcement to the financial markets' regulator and the Nairobi Securities Exchange (NSE), where its stock is listed.

Britam’s share held steady at Sh22.25 apiece on the positive information that could have averted a further fall, as reported in previous sessions. Rawat’s resignation is dated April 22, according to the regulatory filing at the NSE. “We are thankful to Mr Rawat for his contribution to Britam during his directorship,” read the brief statement in part.

His place and that of his appointee nephew will be taken up by the National Insurance Company, on behalf of the Mauritius government. Mr Rawat’s term has ended on a low, years after being the global head of British American Insurance – one of the oldest insurance companies in the world, which is registered in Bahamas. His exit followed a firm declaration by the Mauritius government that it had taken over all assets owned by the Rawat family over allegations of using one of his companies to run a Ponzi Scheme.

Mr Rawat told Mauritian authorities yesterday he was ready to appear in court in France as he did not wish to travel back home over failing health. Among the allegations he is facing are running a mega fraud scheme through his British American Insurance – Mauritius, where he developed and marketed products offering larger-than-normal returns.

Mauritian Minister for Financial Services Sudarshan Bhadain told The Standard one of the investment products ‘had all the hallmarks of a offered interest of a Ponzi scheme” with promised interest of between 10 and 14 per cent. Recent acquisitions in Kenya and other countries in Africa, has significantly raised Britam’s value. Rawat’s 22.34 per cent stake is valued at about Sh13.5 billion.