Waterpark Closes Doors: Rs1.6 Billion Debt and Sale of 5,000 Acres at Below Market Prices 

The Splash N Fun Leisure Park, formerly known as the Waterpark, has officially closed its doors for good. This decision, revealed by Nishta Jooty-Needroo, the newly appointed Chief Executive Officer of the Sugar Investment Trust (SIT), comes after the park ceased operations in February due to pressing safety concerns.

During a press conference held on Thursday, 8th May, the newly installed leadership team of the SIT, including Jay Appiah, head of Procurement, Vijay Bojeenauth, Chairman, and Ranjeeta Deerpaul, Acting Chief Finance Officer, painted a grim picture of the organisation’s dire state.

Over the past decade, the SIT has been plagued by mismanagement, accumulating debts of a staggering Rs 1.6 billion and an annual deficit of Rs 150 million.

Once a beacon of prosperity with 55,000 shareholders, predominantly small planters, the Trust now finds itself teetering on the brink of insolvency.

Jooty-Needroo candidly stated that the SIT is on the verge of bankruptcy, with banks poised to seize its assets.

A thorough assessment conducted by the Ministry of Agro-Industry and the new board of directors revealed that of the 7,000 acres owned by the SIT, a shocking 5,000 acres had been sold off at derisory prices—often 40 to 60% below market value—without proper evaluation. Disturbingly, some of these transactions involved former SIT directors, raising serious concerns about conflicts of interest.

As an illustration of the Trust’s mismanagement, Jooty-Needroo cited the sale of four plots for Rs 11 million, where the buyer merely paid a deposit of Rs 400,000 and is now illegally occupying the land, cultivating sugarcane without due process.

“The SIT has taken loan upon loan, yet achieved nothing in return. Tenants owe millions for the use of our properties, yet no action has been taken to recover these funds.

Contractors have been engaged without contracts, charging rates far above market value.

Despite incurring losses, the SIT continued to distribute dividends by borrowing more money,” she lamented.

Waterpark was never profitable

The Waterpark, it seems, was never a profitable venture. In the fiscal year 2018-2019, the Trust borrowed Rs 350 million for renovations, yet the investment yielded no positive results.

In light of these revelations, the Ministry of Agro-Industry is set to send a letter to the Financial Crimes Commission, urging an investigation into this catastrophic mismanagement.

The new leadership is calling on whistleblowers to come forward, pledging to rectify the situation.

“We have a Strategic Mandate for 2025-2030 that has been approved by the government. A new leadership team and organisational structure will be established.

We are committed to restructuring our debts and pursuing legal action to recover our payments,” Jooty-Needroo asserted, as the SIT embarks on a challenging journey towards recovery.

Source: l’Express