The Hindu : `No evidence of money laundering in Mauritius'

Online edition of India's National Newspaper
Thursday, Jan 09, 2003

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`No evidence of money laundering in Mauritius'

By Our Special Correspondent

NEW DELHI Jan. 8. While calling for a strategic alliance between India and his country for seizing every possible economic opportunity and staying competitive globally, the Mauritius Prime Minister, Anerood Jugnauth, asserted that the Double Tax Avoidance Treaty (DTAT) was beneficial to both countries and there was no evidence of money laundering in his country.

"We are living in a globalised world characterised by cut-throat competition. India and Mauritius should seize the opportunity to forge strategic alliances through joint ventures to remain not only competitive but also to face the difficulties of marginalisation,'' Mr. Jugnauth said addressing a CII business meeting here.

About the tax treaty, he said "both the countries are in a win-win situation'' because of it. Mauritius has strong regulations for money laundering and strict investigations were conducted. No evidence of money laundering in Mauritius has been found", he said seeking to dispel doubts that his country was being used as a safe-haven to launder money by some Indian companies and brokers.

He said that the capital market regulators of the two countries recently signed an agreement to share information on securities dealings. His country has also expressed interest in signing a similar agreement when the Indian Government enacts its own money laundering legislations. Mr. Jugnauth said Mauritius wanted to maintain the image it has in the global financial market. "We want to be there permanently,'' he added.

On exempting Indians from visa restrictions, he said Mauritius was taking all steps to give visas without delay to genuine and bonafide businessmen, tourists and investors, but due to the problem of terrorism, it had to be vigilant. The number of flights between the two countries could also be increased in consultation with India provided there was a demand.

Observing that his country offered opportunities for Indian businessmen, Mr. Jugnauth said Mauritius was a full-fledged member of the Common Market of the Eastern and Southern Africa and Southern African Development Community which gives it privileged and unrestricted access to a vast market.

There was an opportunity for setting up spinning and weaving plants on account of the export opportunities in the U.S. markets, he said and added that a few Indian businessmen have had their projects approved by the Board of Investment and would start operating soon. Such opportunities existed in the IT sector as the Government proposed to convert Mauritius into a cyber island and many Indian IT major were keen on moving in there to avail of the opportunities. His Government had also introduced an integrated resort scheme which allows foreigners to acquire luxury villas and bungalows, he said.

The Minister of State for External Affairs, Digvijay Singh, said India looked at Mauritius as one of the favoured destinations under the Focus Africa programme and had identified sectors such as textiles, electronic goods, manufacturers of metals, transport equipment, drugs and pharmaceuticals, and gems and jewellery for promotion of trade between the two countries.

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