MIC Beneficiaries - Construction: Ramgoolam Denounces 'Abuse of Public Funds'

Title: MIC Beneficiaries - Construction: Ramgoolam Denounces 'Abuse of Public Funds'

Published by: Patrick Hilbert
Date: Thu 23/10/2025 - 11:50

Three construction companies received funding from the Mauritius Investment Corporation (MIC).

The New Social Living Development Ltd (NSLD) awarded a contract worth Rs 2.4 billion to Kuros.

"This is a clear case of gross mismanagement and abuse of public funds, where huge sums have been paid to associates of the previous regime," stated a written response submitted to Parliament last week by Prime Minister Navin Ramgoolam, in response to a question from ruling party MP Farhad Aumeer regarding the beneficiaries of the MIC in the construction sector. The response highlights alleged irregularities in public fund allocations under the previous government, involving companies linked to political figures from that regime.

When asked about the names of the construction companies that benefited from MIC investments, the amounts paid, the social housing contracts awarded by the NSLD, and the financial difficulties faced by these companies, Navin Ramgoolam provided several details based on information from the Bank of Mauritius and the NSLD. According to the government's response, three construction companies received funding from the MIC: Kuros Construction Solutions Ltd, allegedly linked to former Finance Minister Renganaden Padayachy, for Rs 225 million; Best Construct Co. Ltd, for Rs 150 million; and Ramasawmy & Ramasawmy Co. Ltd, for Rs 40 million.

Regarding social housing contracts, two of these companies were selected by the NSLD. "Kuros Construction Solutions Ltd and Ramasawmy & Ramasawmy Co. Ltd were awarded contracts for the construction of social housing, amounting to Rs 2.4 billion and Rs 548 million respectively," the parliamentary document states.

FLAGRANT EXAMPLES OF MALFUNCTIONS

Financially, the situation varies. "Ramasawmy & Ramasawmy Co. Ltd is currently meeting its repayment obligations to the MIC," the response clarifies. On the other hand, Kuros Construction Solutions Ltd, which has already laid off all its staff, and Best Construct Co. Ltd are in default. The latter has been under judicial liquidation since June 2025.

For Kuros, significant delays have been observed in executing social housing projects: "The NSLD notified the contractor of the termination of the contracts awarded to it. The contractor indicated that the contract's share would be executed by another contractor for the same contractual amount." For the Prime Minister, these are clear examples of dysfunction.

For the financial year ending June 30, 2024, Kuros reported a turnover of Rs 1.16 billion and a net profit of Rs 20.47 million. However, the company faced a structural financial imbalance, largely due to its significant reliance on external financing. The company’s balance sheet shows total liabilities of Rs 1.77 billion, of which Rs 1.26 billion are short-term. These debts exceed the company's assets, totaling Rs 1.73 billion, resulting in negative equity of Rs 36.65 million.

The Padayachy/Selven Warden axis (director of Kuros Construction Solutions Ltd) is under investigation by the Financial Crimes Commission (FCC). Last April, the FCC conducted a search at the company’s premises. Selven Warden was questioned at the FCC about the funds the company received from the MIC.