EDB’s Rs104.9 Million Rent Saga Sparks Political Firestorm

The Economic Development Board (EDB) has been embroiled in a murky web of allegations involving millions of rupees and questionable contractual dealings. The spotlight now falls on the year 2022, when the EDB’s headquarters was relocated to Building 7, Exchange Square, in Ébène — a move shrouded in controversy and suspicion.

Accusations of Favouritism and Questionable Tender Processes

The Prime Minister, Navin Ramgoolam, raised the curtain on these troubling issues on Tuesday, 13 May 2025, during a session of the National Assembly.

His accusations centre on potential favouritism directed towards PSH Investment Ltd, a company that secured lucrative leasing agreements from the state body during the tenure of the previous administration.

Ramgoolam’s pointed critique exposed a saga of opaque dealings and questionable procurement processes that demand urgent scrutiny.

According to the Prime Minister, in October 2018 — well before the construction of the new building had even begun — an open call for tenders was issued for the leasing of office space.

Yet, Ramgoolam asserted, “All other bidders were deemed non-compliant. Only PSH Investment Ltd qualified and was awarded the contract,” a statement delivered with unwavering firmness.

This claim is raising immediate questions about the transparency and fairness of the bidding process.

The Deal, Delays, and Disputed Payments

The deal was sealed on 9 August 2019, when the EDB entered into an agreement with PSH Investment Ltd for a sprawling 5,000 square metres of office space, complemented by 130 parking slots.

The contractual promise was clear: the building’s completion was scheduled for December 2020, with rent payments to commence in February 2021.

However, reality diverged sharply from this plan. The Prime Minister detailed that the premises were only made available in October 2022 — a staggering delay of nearly two years, casting a pall of suspicion over the entire process.

Further igniting the controversy, a subsequent lease was signed on 30 May 2024, for an additional 170 square metres on the ground floor, including two extra parking spaces.

The EDB commenced occupation and began paying rent from December 2022.

To date, the Board has disbursed Rs 104.9 million in rent, alongside Rs 7.2 million in syndic fees, as revealed by Ramgoolam in response to Deputy Nitish Beejan’s inquiry.

Ownership, Contract Terms, and the Broader Implications

Adding fuel to the fire, the Prime Minister disclosed that PSH Investment Ltd is wholly owned by NG Holdings Ltd, whose sole shareholder is Mr Vinash Gopee.

This revelation is raising grave concerns about potential conflicts of interest and the integrity of the contractual arrangements.

Delving into the contractual specifics, Ramgoolam outlined that the initial lease spans a minimum of ten years, with the second extending over eight years and six months.

The monthly rent for the first contract is set at Rs 625 per square metre (excluding VAT), escalating to Rs 1,147 per square metre in the second.

Notably, a clause stipulates that from December 2027 onwards, rent will be reviewed biennially in accordance with the consumer price index.

Until then, the contract permits termination with four months’ notice, though the EDB remains liable for rent until the contract’s conclusion.

This cascade of revelations compeled a profound reflection on the management of public funds and the transparency—or lack thereof—in the procurement processes under the previous government.

As Ramgoolam concluded, “This sequence of events raises serious questions about the stewardship of public resources and the integrity of contractual procedures during that period.”

Source: Defi Media