GM Claims Rs 2.3 Billion to Nine Parastatal Bodies

"The government intends to claim the money parastatal bodies owe. When they were in a difficult situation, they asked the government for help, but now they are in trouble, it is time to repay the loans they had taken, "says one in the right circles. It is nearly Rs 2.3 billion are concerned, if we take into account the capital and accrued interest in recent years. While some agencies repay their loans from time to time, others do not outright.

Payers in the government's sights

Many parastatal bodies borrow large sums to the government when they encounter financial difficulties. Many do not honor their commitments when it comes to pay their debts. First there those who repay their loans only once per year. And others who are struggling to make monthly payments. This is not the case of the Central Water Authority (CWA), who had borrowed a large sum to improve the water supply in the country.

Currently, it repays the loan monthly, at times even exceeding the amount monthly payments. Indeed, with the increase of water prices last year, it was Rs 315 million more entering the coffers of the CWA. On the Central Electricity Board (CEB), it is only in the last three years he has started making profits. There is also the fact that this organization is investing heavily to produce electricity. Regarding Business Parks of Mauritius Ltd (BPML) and BPML Freeport profits were around Rs 215 million and 20 million, respectively, over the past four years. The slate of the Development Bank of Mauritus is a little over Rs 220 million. The bank primarily helps small and medium-sized enterprises (SMEs). The main difficulties of the DBM are bad borrowers who can not repay their debts. As a result, the bank is obliged, in some cases, remove these debts, resulting, not surprisingly, serious financial difficulties. The National Housing Development Company is also in this situation, having to confront deadbeats who often do not make the first deposit to purchase a property and, thereafter, pay nothing.

However, accounts for most of these parastatal bodies are no longer in the red. Some even make big profits, like the CEB and BPML. That is why the government will ask them to honor their commitments.