The Board of Directors of SBM Bank (Mauritius) Ltd (“the Bank”), reconstituted approximately six months ago, wishes to provide an update on key areas of focus and progress since assuming office.
Since its appointment, the Board has prioritised restoring stability, strengthening governance, and ensuring that the Bank continues to operate in a safe, sound, and responsible manner, in full compliance with applicable laws, regulations, and supervisory expectations.
Governance and Leadership
The Board has initiated structured and robust processes to address vacant senior management and key function roles. Recruitment and selection exercises are being conducted with due diligence, including fit and proper assessments and the observance of required internal and regulatory processes. While these processes necessarily take time, they are essential to ensure the integrity and sustainability of appointments made.
During this period, the Board has also overseen the onboarding of additional Directors with specialised expertise, including in information technology and digital risk, to further strengthen oversight in critical areas of the Bank’s operations.
Process Enhancement and Compliance
Recognising the importance of timely execution while maintaining strong governance, the Board has identified opportunities to streamline internal processes without compromising legal, regulatory, or procedural requirements. These enhancements are intended to support effective decision making while preserving the necessary checks and balances expected of a regulated financial institution.
Investigations, Reviews, and Recent Disciplinary Decisions
The Board is fully cooperating with all ongoing internal and external investigations and reviews. It remains committed to transparency, accountability, and due process.
In this context, following preliminary findings arising from internal reviews and in line with all regulatory requirements and the rule of law, the Board decided, at its meeting held on Friday 06 February 2026, to suspend the Head of Internal Audit with immediate effect, pending the completion of the required procedural steps and further assessment.
This decision aligns with the Board’s firm stance on upholding governance standards. In recent months, the Board has taken similar actions regarding employees who have been charged with irregularities, ensuring that appropriate measures are applied consistently and in accordance with internal policies, legal provisions, and regulatory expectations. In this same context, the Board also terminated the contract of Mr. Premchand Mungar as Chief Executive of the Bank in December 2025, following governance‑related concerns and in line with the Bank’s commitment to accountability and sound leadership.
The governance process relating to the former Chief Executive unfolded over several months, following a structured sequence of reviews and decisions. The matter began on 28 March 2025, when the Board decided to suspend Mr. Premchand Mungar from his duties as Chief Executive pending the outcome of an internal investigation initiated by the Internal Audit & Investigation Division.
After completing its review of the internal audit report on 19 September 2025, the Board referred the case to the Disciplinary Committee (DC) for further examination. Shortly thereafter, on 30 September 2025, the Board appointed Me Angelique Anne Desvaux de Marigny as Chairperson of the DC. Over the period from 3 October to 27 November 2025, the DC conducted nineteen disciplinary hearings to ensure a thorough and fair assessment of the matter. Mr. Mungar together with his legal counsel, Me Ravindra Chetty and Me Jaykar Gujadhur, were present at all these hearings.
This process culminated on 3 December 2025 with the conclusion of the disciplinary exercise, resulting in the termination of Mr. Mungar’s employment contract with effect from 2 December 2025. On 8 December 2025, the Bank received formal notice of Mr. Mungar’s intention to appeal the termination decision.
To ensure impartial review, the Board appointed Me Nandkishore Ramburn, Senior Counsel, as Chairperson of the Appeal Committee on 13 January 2026. The Committee held its hearing on 15 January 2026. Subsequently, on 6 February 2026, the Board examined the Appeal Committee’s report and informed Mr. Mungar that his appeal had been set aside.
These decisions were taken strictly within the ambit of the law and in full accordance with the Bank’s internal policies, regulatory obligations, and the principles of natural justice. The Board has been particularly mindful of ensuring that every action undertaken is supported by the appropriate legal processes and documentary evidence, with careful attention to due process at each stage. In doing so, the Board has adopted a rigorous and methodical approach aimed at leaving no stone unturned in the examination of facts, the assessment of risks, and the handling of matters that bear on the Bank’s governance and integrity.
The Board has further taken note of the recent judgment delivered by the Intermediate Court, in which the Bank was found guilty of an offence under the Financial Intelligence and Anti‑Money Laundering Act (FIAMLA). According to the ruling, the Bank was held liable for accepting a cash transaction exceeding the statutory limit, in breach of sections 5 and 8 of FIAMLA. The Board acknowledges the seriousness of this finding and reiterates its commitment to reinforcing compliance frameworks, strengthening internal controls, and ensuring full adherence to all regulatory requirements moving forward.
The Board has also taken note of the progress of ongoing investigations by the Financial Crimes Commission (FCC), including matters relating to the “Reward Money” and Dhyanavartam Ltd cases involving certain officers of the Bank. It continues to ensure that the Bank cooperates fully with the authorities and remains firmly committed to initiating disciplinary proceedings against any staff found to be implicated in the transactions being investigated.
Responsibility Towards Stakeholders
The Board remains acutely conscious of its responsibilities towards all stakeholders, including customers, employees, regulators, and counterparties. Safeguarding customers’ interests, maintaining business continuity, and preserving confidence in the Bank remain central to the Board’s oversight role.
While certain matters require careful handling and time to resolve, the Board remains actively engaged and committed to acting in the best interests of the Bank and its stakeholders, guided by prudence, integrity, and regulatory compliance. In parallel, the Board is finalising the recruitment of a Head of Investigation to further strengthen the Bank’s capability to uphold discipline, reinforce compliance, and ensure adherence to all applicable standards.
Further updates will be provided when appropriate and within the bounds of confidentiality and applicable legal requirements.
Issued by Authority of the Board of Directors of SBM Bank (Mauritius) Ltd
Rundheersing Bheenick, GOSK
Chairman
12 February 2026