New Controversy: Rs 15 Billion Petrol Deal Awarded to ‘Non-Bidder’

Labour MP Ehsan Juman has expressed concerns over a Rs 15 billion contract awarded to Mercantile & Maritime Group (MMG) by the State Trading Corporation (STC).

The contract, initially subject to an open tender with six bidders, was cancelled, and the deal was later struck with MMG, a non-participating supplier.

While STC Director Rajiv Servansingh cited three reasons for choosing MMG – a lower price, payment in Mauritian rupees, and extended credit terms – crucial details such as the exact price and conversion rate used for rupees remain undisclosed.

Juman has called for transparency, urging disclosure of all pertinent data, including the price, premium, quantity, and quality of the fuel purchased.

He raised doubts about the impact of such decisions on future participation of major suppliers in STC tenders. 

Additionally, Juman questionned MMG’s role as a broker rather than a producer.

The STC justified the choice of MMG, highlighting improved credit terms and the guarantee of $15 million received from the company.

Source: L’Express