[Opinion] In Mauritius, the incestuous relationship between the government and the private sector is in full swing

The incestuous relationship between the government and the private sector is not new, but it has been consolidated with public assistance through the MIC. This is how proud a Jean-Pierre Dalais is
celebrating the 50th anniversary of CIEL Floréal Knitwear with its new space dedicated to textiles.

The president of the CIEL group, Arnaud Dalais, for his part praised the contribution of those who move the group forward….Now Prime Minister Jugnauth, who is not a little proud of himself “contribution”. Bis repetita during the inauguration of LUX* Grand Baie which is one of the six seaside resorts and hotels in the LUX* portfolio in Mauritius. In the presence, among others, of the Minister of Tourism, Steven Obeegadoo, of Avinash Teeluck, who seems to be the shadow of Kobita Jugnauth, Sanjiiv Ramdanee, the troublesome brother-in-law, and Zouberr Joomaye the “advice” very special, the Prime Minister said that Mauritius recorded Rs 39.6 billion in profit for the period July 2021-June 2022, with a target of one million tourist arrivals by the end of 2022. That made the Prime Minister, that the recovery of tourism the industry would not have been possible without the close collaboration between the public and private sectors. Amen.

If Pravind Jugnauth did not announce himself by flattering his management of the country though “ the difficult situation caused by the aftermath of Covid-19 and the war in Ukraine and Russia” or face his detractors who, according to him, are leading a campaign “unhealthy and unpatriotic who wants to believe that everything is wrong”. It announced several projects expected in the country to build four more Smart Cities in Azuri, Le Bouchon, Ferney and Saint-Felix. It means that his projects and inaugurations are, in a way, gifted by the government. A state of “win-win” . A real cash cow for the government but also for the MSM.

The Mauritius Investment Corporation disburses money at the same rate as a water treatment plant that sends potable water into the distribution circuit.

This subsidiary of the Bank of Mauritius has already made a commitment to pay Rs 39.8 billion out of (more than) Rs 85 billion injected by the Bank of Mauritius. But let those protected by power be reassured. There’s still a big jackpot to share. The Gopees, Jhugroos, Dalais, Lagesse and others can sharpen their teeth. So far, around Rs 10.3 billion has landed in the pockets of beneficiaries and applications amounting to Rs 29.5 billion have been approved.

A jackpot of Rs 45 billion awaits the minions of power

What the left hand gives, the right hand must not know! Or the opposite is true.
In any case, it is not surprising to note that out of the Rs 6.7 billion disbursed by the Mauritius Investment Corporation, Rs 650 million will go to Mauriplace Beach Resort Limited, the family company of the Prime Minister’s wife. Remember that among the beneficiaries, we see Akai Fisheries Co Ltd, PSH Investment Limited, Compagnie Mauricienne de Textile Ltée and Luxury Retirement Village Ltd. Note that two hotel groups receive large sums from MIC. They are New Mauritius Hotels Ltd and Long Beach Resort.

Remember that 41 companies have benefited from the generosity of the Mauritius Investment Corporation since June 2020. This is what emerges from the latest documents published on the subject. Note that by the end of March 2022, MIC has invested Rs 44.6 billion in 37 companies. From March to August, ie in five months, it paid only Rs 2.1 billion more.

In the same order, the IMF is clear during a mission in the country. “The BoM should relinquish ownership of the Mauritius Investment Corporation.” According to him, the MIC should return the unprovided financing, ie Rs 48 billion, to the BOM and avoid quasi-fiscal financing. For the mission, the MIC’s ownership of the BoM weighs the independence of the institution and disseminates the concept of the separation of monetary and fiscal policies. But who will listen to the IMF when everyone benefits from butter and butter money?

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