Mauritius Post Bleeds Rs 1.5 Billion Losses, Faces Crisis

Mauritius Post Ltd faces a deep crisis, with financial troubles threatening its future. As of June 30, 2024, the postal service reported losses of Rs 1.5 billion, highlighting how far it has fallen from its once-strong position as a key national institution.

The situation is even worse when it comes to the pension fund. It is now running a deficit of nearly Rs 2.6 billion, putting the financial security of thousands of workers at risk.

These figures were revealed by Minister of Technology, Communication, and Innovation, Avinash Ramtohul, in response to questions in Parliament.

Ramtohul explained that an internal audit shows more than 60 post offices are losing money, indicating widespread problems across the network. The government has recognized the crisis and took steps in March 2025, asking Mauritius Post to prepare a recovery plan.

That plan was approved in April by the company’s board, but details remain secret. The minister hinted that reforms will focus on modernising the business through digital technology, restructuring staff, and cutting costs.

However, deeper issues are at play. Ramtohul pointed out that personnel costs now make up over 80% of MPL’s expenses, even though the losses have continued since 2020.

The company has hired 236 new staff members without a clear plan, increasing its workforce by 25% without assessing whether this is necessary. Meanwhile, competition from emails and other digital channels has sharply reduced traditional letter deliveries.

Corruption and mismanagement are also significant concerns. Ramtohul cited a Rs 600,000 loss from a subcontracting deal with Proguard that remains unpaid.

Worse still, the same company is accused of securing an expensive contract worth Rs 1.2 million per month through irregular tender procedures.

The minister criticised a former government minister for expanding post office locations without evaluating whether they were needed, contributing to financial strain and customer dissatisfaction. He stressed that a complete overhaul of the postal system is essential.

“I believe the new board will succeed where others have failed,” he said, expressing hope for renewal despite the bleak outlook.

Transparency issues also plague MPL. Ramtohul admitted that procurement procedures are sometimes vague, with contracts being split after approval and decisions made unilaterally.

The Board of Directors is now expected to investigate and fix these problems.

Source: Le Mauricien