The Central Bank has filed a major lawsuit against two NiPat General Contractors Ltd. Directors to recover millions paid out on fraudulent government cheques.
The claim, filed by a senior legal team led by former Attorney General Anand Ramlogan, centres on at least $45 million in fake payments cleared by the Central Bank.
According to the Central Bank, one cheque for $20 million was cashed on September 29, 2023, despite the Ministry of Planning, Economic Affairs and Development later confirming it neither issued the instrument nor owed NiPat any money.
A second cheque, valued at $25 million, was also processed.
The payments were made during the tenure of A former Central Bank Governor, who had denied Auditor General Jaiwantie Ramdass access to the Bank’s electronic systems.
That decision was reversed by newly appointed governor Larry Howai, allowing auditors to uncover the fraudulent transactions.
However, by the time investigators detected the scheme, most of the funds had already been withdrawn or transferred to third parties, but the bank managed to freeze just over $1.2 million remaining in the accounts.
The Fraud Squad is said to be actively investigating the matter and is said to be close to laying charges for tendering a false cheque, fraud, conspiracy to defraud the State and receiving monies under false pretences.