Barak Fund Management Investors Demand CFO Investigated
The Barak Fund Management, a Mauritian based trade finance fund, landed itself in hot waters after it was called out by multiple whistleblowers for its alleged corruption. These accusations came soon after the bank’s financial conditions crumbled down amidst the Covid-19 pandemic last year. The whistleblowers blamed the bank’s crippling finances on the corruption of the senior officials of the bank. These alleged culprits included the Barak Fund’s Chief Investment Officer Prieur Du Plessis and Chief Financial Officer Kevin Ramsamy.
It is reported that a few employees had complained to the Mauritian bank about a potential breach of confidence by the senior officials of the bank. One concern was raised about the value of a security deposit in exchange for a loan made to a company. Whistleblowers claimed that the value of the deposited security was not economical enough for the loan to be authorized. They questioned the bank’s legitimacy in the matter and how the clearance for such loans was allowed. That was only one of the many such loans authorized by the bank reportedly. Due to the bank’s fragile financial condition, it is speculated that many such loans were perhaps authorized in the past as well.
One more concern was raised regarding the overvaluation of certain assets by the bank. This was a major claim as the bank was being accused of fraud. Kevin Ramsamy has not been specifically named in the accusations made; however, his involvement in the matter is certain because of his position. Every transaction of loan has to go through the Chief Financial Officer before being finalized. This is why the people speculate that Ramsamy must be involved in authorizing these fraudulent loans. The CFO of Barak Fund has refused to comment on these speculations. The bank has already led an in-house inquiry and declared all the accusations to be false. However, this in-house inquiry failed to clarify the hows and whys behind the unexplainable loans authorized by the CFO which brings the whistleblower allegations to two conclusions; either Kevin Ramsamy is complicit in the fraud committed or he is very bad at his job.
Kevin Ramsamy was able to distance himself from the allegations; however, the CIO of the Barak Fund has a lot to answer for. Prieur Du Plessis is a founding member of the bank but his actions keep landing him in controversies that might result in its suspension. Multiple allegations were made against him by the whistleblowers back in 2019. He was allegedly involved in committing fraud on multiple events that occurred in 2014-2017. Du Plessis was also accused of taking bribes in cash and high-priced cars from a coal mining company in Africa in exchange for baffling loans. The bank once again stood firm against these allegations against its CIO and claimed them to be bogus.
Despite major financial setbacks faced by the Barak Fund in recent times, it still refuses to acknowledge the whistleblower allegations or hold its employees accountable. Its inability to suspend Du Plessis for his fraudulent actions or question Ramsamy on his performance as CFO has made all the investors anxious.
The Barak Fund is keen on supporting its allegedly fraudulent employees but has shown little to no empathy for its clients that have suffered huge losses. This unjust behaviour on part of the bank has all the investors demanding an external investigation into the whistleblower allegations. It is only fair that the people are given a fair chance to fight the senior officials that landed them in this position due to their greed.