71 Private Colleges’ Court Victory : PSEA’s ‘Grant Formula’ Ruled Illegal

In a significant ruling, the Supreme Court has accepted a judicial review application filed by the Federation of Managers (FoM) of private colleges against the Private Secondary Education Authority (PSEA) over the new grant formula. The judges, Narain and Maghooa, deemed the complaint as admissible, contrary to PSEA’s rejection of any review of the grant formula.

The FoM had filed the judicial review application in December last year, shortly after the publication of the Comprehensive Grant Formula (CGF) 2024-26.

The complaint was lodged on behalf of the federation and two of its members, Ramdass Ellayah, manager of Bhujoharry College, and Clément Wong, of Keats College.

The managers contend that their proposals submitted to PSEA were ignored, and that they have made efforts to find a solution, but their approaches to various authorities were unsuccessful.

According to the FoM, the new grant formula is “unilateral” and does not take into account the evaluations conducted by the Valuation Office.

They also argued that some colleges receive less than Rs 325,000 per month, while only one college receives Rs 750,000. The FoM further alleges that there are inconsistencies in the CGF 2024-26.

The PSEA had opposed the FoM’s application, arguing that the barometers for compensation had already been reviewed upwards. According to the CGF 2024-26, the Annual Rent Value varies from Rs 325,000 to Rs 750,000 per month.

However, FoM maintained that some colleges received less than Rs 325,000 currently and that only one college received Rs 750,000.

The private colleges also have a Block Grant consisting of Managerial Grant and Variable Grant for their operations.

The amount depended on the number of students admitted in each college. FoM has denounced “drastic” cuts by PSEA, stating that certain items are no longer accepted by the authority.

The court’s decision to hear this complaint is considered a first victory for FoM. In its complaint, the federation demanded that PSEA explains how it calculated the CGF 2024-26.

This decision by the regulatory authority is also seen as an infringement on article 3 of the Constitution regarding fundamental rights and individual freedoms.

At the federation level, satisfaction is palpable at this court development. “The judges found our complaint was receivable.

We are satisfied that the court has found all our grievances since 2019 worthy of being heard,” explained the federation.

However, they express disappointment that it had to come to this point and reiterate their call for dialogue with PSEA. “It is time for everyone to sit down to discuss for the well-being of our children,” they said.

In light of this development, FoM has also asked PSEA to refund all amounts deducted as Disallowed Items in the Variable Grant.

There are 71 private colleges subsidized by the state in Mauritius, with eight similar colleges in Rodrigues and one in Agalega. An agreement was signed in 1977 for taking care of students in free education framework.

Source: Le Mauricien