SACL STILL UNABLE TO PAY DIVIDENDS!

Despite a recent article in Le Nouveau Seychelles Weekly enquiring about the payment of dividends to thousands of Seychellois share holders who bought shares in the newly privatized SACOS company, SACL has kept a sinister and uneasy silence on the issue. This week we revisit the issue of payment of dividends by the company as many of our readers have called to request that we put pressure on SACL to inform its shareholders about the situation of the company. This paper questioned the validity of the whole process of privatization of SACOS after most of the shares were sold to a Mauritian Insurance company, SWAN, as one which was totally illegal as it did not comply with the provisions of the Companies Act 1972.

The Act clearly requires publication of a prospectus and valuation of the shares before the same can be sold on the open market. Although this was strongly rebutted by the appointed agent of the company on SBC television, since then nothing has happened. SBC, not surprisingly, failed to take up the matter with SACL as it showed itself there only to defend the Company rather than protect the interest of its shareholders.  Enquiries to SACL about payment of dividends to its shareholders have been met with a deafening silence.

This has left many people out in the cold and wondering what is really going on within this company. Employees of SACL who took bank loans to purchase the shares at preferential prices, are now paying back their loans with 10% interest thereon to commercial banks without so much as a word of assurance from the company. Meanwhile the company has continued to behave with unusual arrogance refusing to give information or to make a public statement about the issue.

 This in turn has led to a lot of speculations and frustration to the share holders who were led to believe that the purchase shares in the company is a worthwhile investment and expected payment of substantial dividends within one year of purchase.

However, this has not materialised and these people are now expressing frustration and anger at the general attitude taken by the company vis-à-vis its shareholders. If SACL is really sincere and have the best interest of its shareholders at heart then  we expect at the very least a statement from the Company explaining its current position in particular why it has not paid any dividend at all to its shareholders. SACOS, before it was privatized, was one of the few profitable parastatal and the trend was set to continue for at least the foreseeable future since there is little competition in this field. For many years SACOS operated as a monopoly in insurance in Seychelles making millions and millions in profit which was paid to the government as dividends.

This prompted many Seychellois to clamour for shares in the company when they were floated in a privatization exercise characteristic of a capitalist entity. President James Michel even went on SBC television to proclaim that Seychellois are not only tourists but have now become shareholders and capitalists. When we go to Mauritius, he said, tell the Mauritians that we are now shareholders. He went on to say that Seychelles Savings Bank and Nouvobanq will soon follow suit. However, this has not materialised and many are now wondering whether they were not indeed taken for a ride!  

September 14, 2007
Copyright 2007: Seychelles Weekly, Victoria, Mahe, Seychelles