5 Companies in Turmoil: MIC Funding’s Dark Side, Political Favouritism Exposed

In a scandal that has sent shockwaves through the political corridors, several companies are now under investigation for alleged political favouritism and questionable management of public funds. The Financial Crimes Commission (FCC) has turned its scrutiny towards a number of enterprises that have benefitted from public financing through the Mauritius Investment Corporation (MIC). Among those implicated are Kuros Construction Solutions Ltd, Menlo Park Ltd, Pulse Analytics, and Verde Frontier Solutions Ltd.

Kuros Construction: Public Funds with No Job Security

Kuros Construction Solutions Ltd, a player in the building sector since 2013, has received a staggering Rs 225 million from the MIC, a subsidiary of the Bank of Mauritius, aimed at supporting strategic businesses impacted by the Covid-19 pandemic.

Yet, despite this substantial financial lifeline, the company made the shocking decision to lay off 750 foreign workers in January and now struggles to pay its remaining employees.

Financial statements for Kuros, covering the fiscal year ending 30 June 2024, reveal a revenue of Rs 1.16 billion, but a meagre gross margin of just Rs 157 million, burdened by exorbitant administrative and financial costs.

The company is reported to have a negative equity of Rs 36.65 million, with short-term debts soaring to Rs 1.26 billion.

The FCC is probing the utilisation of the funds allocated by the MIC and is examining the connections between Kuros’s director, Selven Warden, and former Finance Minister Renganaden Padayachy, who is suspected of having influenced the loan’s approval.

Notably, the construction of Padayachy’s villa in Roches-Brunes, costing Rs 19 million and potentially linked to Kuros, is also under the FCC’s investigation.

Verde Frontier Solutions: Public Contracts and Familial Ties

Founded in 2015, Verde Frontier Solutions Ltd is helmed by Venna Pavaday and Dirish Noonaram, both of whom are believed to have close ties to the former minister Padayachy.

The company acted as a “transaction advisor” in the sale of 70% of Apavou Hotels Ltd’s shares to the MIC for Rs 2.4 billion in June, a transaction that lies at the heart of the Padayachy affair.

Verde has also secured multiple public contracts, including a Rs 15 million deal from the Bank of Mauritius.

The FCC is investigating potential pressures exerted by the former minister to favour Verde. Furthermore, Verde acquired the media outlet Ion News in 2020 through Ion Digital Ltd, a company with a capital of Rs 2, which reported no revenue in 2022.

Verde claims to be a corporate finance and data analytics consultancy, serving clients across various sectors.

For the financial year ending December 2023, it reported a revenue of Rs 34.3 million and a profit of Rs 18.4 million, following a loss of Rs 30.7 million the previous year.

The two shareholders of Verde were questioned by the FCC last Thursday, 10th April, particularly regarding their role as “transaction advisors” in the sale of the Apavou Hotels shares.

Menlo Park and Pulse Analytics: Start-ups Under Surveillance

Menlo Park Ltd, registered in December 2022 and specialising in advertising activities, counts the MIC among its shareholders, holding 135,150 shares.

The principal shareholders are Stéphane and Mary-Queenie Adam, who are also the founders of Pulse Analytics, a company claiming to be based in Dubai.

Pulse Analytics received a $1 million funding injection from the MIC in October 2024.

The FCC arrested the leaders of Pulse Analytics in early March for “conspiracy to defraud” in relation to this funding, which also led to the first arrest of Jitendra Bissessur, the former CEO of the MIC.

They were subsequently released on bail. The company is notorious for its political analyses disseminated on Facebook, including controversial electoral predictions.

As the investigation unfolds, the implications of these findings raise serious questions about the public funds allocation under the previous regime.

Source: Defi Media