Kuros Construction Promises Expatriate Salaries Payment by 14th March

Expatriate employees of controversy-crippled Kuros Construction Solutions Ltd are assured that their long-awaited salaries will be disbursed by 14th March. The company has committed to honouring the wages owed to its foreign workers, despite a troubling two-week delay.

In a statement issued on 2nd March, the management attributed this setback to “exceptional circumstances beyond our control”.

It should be noted that on 3rd February, an agreement was reached at the Ministry of Labour to end a strike by expatriate workers, with the salary payments originally scheduled for 28th February.

However, Kuros Construction found it necessary to request an additional two-week extension to complete the payment procedures.

The company has reassured its workers that the efforts to secure the necessary funds are nearing completion and that payments will be processed as swiftly as possible.

It is worth highlighting that around 600 foreign workers, including Nepalese and Indians employed by Kuros Construction, staged a sit-in on 3rd February at the ground floor of Victoria House, which houses the Ministry of Labour and Industrial Relations in Port-Louis.

In addition, a meeting was held with the affected employees to clarify the reasons behind the delay and to outline the measures being implemented by the management.

In tandem with these efforts, the company has also initiated a recovery process with certain clients who are behind on their payments, aiming to secure the financial inflow necessary for fulfilling its obligations.

Kuros Construction Solutions Ltd, once a prominent player in Mauritius’s construction sector, has reported a staggering revenue of Rs 1.16 billion for the fiscal year ending June 30, 2024. Yet, beneath this facade of commercial success lurked a grave financial crisis, characterised by crippling debt and negative equity. This unsettling reality was made even more pronounced by the substantial support of Rs 225 million provided by the Mauritius Investment Corporation (MIC), intended to fortify the company’s stability and ongoing projects.

Even though the company reported a net profit of Rs 20.47 million, it grappled with a structural financial imbalance primarily due to an over-reliance on external financing.

The company’s balance sheet painted a dire picture, with total liabilities reaching Rs 1.77 billion, including Rs 1.26 billion of short-term debt. 

These obligations overshadow total assets of Rs 1.73 billion, resulting in a troubling negative equity of Rs -36.65 million. 

Notable financial obligations included long-term liabilities of Rs 493.1 million, tied to heavy borrowing and vulnerability to cash flow fluctuations. 

Furthermore, supplier debts of Rs 715.8 million indicated significant payment challenges with business partners, while short-term liabilities total Rs 553.7 million, placing immense strain on liquidity management.

Source: Le Mauricien