Rs75+ Million MEL Contract Under Fire, Minister Mahomed Calls for Investigation

The Minister Osman Mahomed has revealed grave irregularities in the Rs 75 million-plus contract between Metro Express Ltd (MEL) and Alliance Media. The controversial deal, concerning advertising rights over MEL’s entire network, was reportedly subjected to a restricted tender rather than an open call, raising questions of favouritism and procedural breaches.

Signed on 28 August 2020, the contract included clauses dismissed by the State Law Office as abusive, allowing excessive extensions at Alliance Media’s discretion.

“This is a deeply concerning situation,” the minister lamented, pointing a finger squarely at the former MEL management.

Current Board Demands Transparency

Under the leadership of Dr Harvin Soonarane, MEL’s board has demanded on 14 April 2025 that Alliance Media provide proof of revenue earned.

Minister Mahomed warned that the absence of mechanisms for MEL to verify actual income seriously undermines the state’s financial interests.

MEL has received Rs 34.2 million so far, yet only Rs 5 million constituted proportional revenue, with revenue-sharing terms potentially costing the state up to 75% beyond Rs 70 million in earnings—figures that remain unverifiable.

Contract Termination and Investigation

Asked about the possibility of immediate contract termination, Minister Mahomed declared that breaches such as failure to provide quarterly revenue reports could spur cancellation.

He confirmed that should MEL’s board find sufficient evidence of wrongdoing, the dossier will be handed over to the Financial Crime Commission.

The mismanagement of the previous regime has not only jeopardised public funds but also raised serious questions about transparency and accountability in government dealings, leaving a troubling legacy that demands urgent scrutiny and reform.

Source: Defi Media