By Hibz Yousrina From Island Crisis

While the PM said that the worth of the assets of the BAI is around Rs 25 billion, an expert has mentioned Rs 19 billion. Actuaries of PWC from South Africa are to arrive today to clear this out and find out the true value thereof.

South-African actuaries of PricewaterhouseCoopers (PWC) are expected to arrive today, 7th of April, to establish the worth of the assets (including the liquidity assets) of the Bramer group. One of the experts has mentioned Rs 19 billion.

However, the Prime Minister spoke of around Rs 25 billion. What about the missing Rs 6 billion? How has the PM reached the digit 25 billion? The arithmetics thereof have not been divulged.

The said Rs 25 billion have resulted from the insurance premiums that the British American Insurance (BAI) has to pay its clients, and the returns on investments promised to depositaries at the Bramer Asset Management (BAM). The BAM is the entity that manages assets and wealth of individuals; its clients deposit huge sums of money and the return on investment is very high, up to 6.5 %, which is higher than the usual rates on the market.

BAM will now have to manage around Rs 6 billion. But, its practices are thought to be suspicious. It was involved in the buying of the assets of the BAI in 2010 by Seaton Investment. It seems that its practices went beyond this purchase. It is believed that the amount deposited there have been constantly invested in subsidiaries of the group: Apollo Bramwell, Iframac, Courts, Arcasa. Other sums of money recovered from clients of insurance have also been invested in the subsidiary groups of the BAI.

The government now reproaches the BAI for not having reacted promptly when the investments brought forth less than was expected. Moreover, it seems that the BAI was overestimating its assets in its annual accounts to further its healthy image. Until last week.

IMAGE: Bramer Bank

For more on this story go to: http://news.islandcrisis.net/2015/04/south-african-actuaries-to-determine-the-worth-of-bais-assets/