Heritage City: Rs39.7 Million Misappropriated Without Public Tender, March-June 2016

The Heritage City project remains controversial nearly a decade after its launch. On the 24th June Jyoti Jeetun, Minister of Financial Services and Economic Planning, spoke on behalf of the Prime Minister and revealed new concerns about the failed project. She announced an official investigation into how public funds amounting to millions of rupees were spent.

Neither India nor Saudi Arabia provided funding or grants for Heritage City. The project was fully financed locally.

In October 2015, the government tasked the Ministry of Financial Services and Good Governance with developing Heritage City on a 336-acre site opposite Ebène Cyber City.

On December 18, 2015, the Cabinet approved creating Heritage City Company Limited, a public company responsible for the project, with a three-year timeline.

The contract controversy:

• The core scandal involves consulting services awarded to Stree Consulting.
• According to Jeetun, a high-level committee, led by the Cabinet Secretary at the time and including the Financial Secretary and Solicitor General, met on February 23, 2016, to review a contract proposal with Stree.
• The contract was valued at no more than USD 4.34 million.

Lack of formal agreement:

• The report referenced a cooperation agreement between Mauritius and the United Arab Emirates, but no official documents were found in the ministry’s archives.
• Only a signed letter between the president of PCFC Real Estate Development (FZE) and the ministry’s permanent secretary mentioned Stree Consulting, without any formal protocol.

Contract approval and payments:

• On March 2, 2016, the government approved the Stree Consulting contract without a public tender or competitive process. The contract was signed on April 17, 2016.

Funding and expenditures:

• On March 16, 2016, Rs 55 million was transferred from the Treasury to Heritage City Company Ltd’s account at the State Bank of Mauritius. Of this, Rs 39,716,981 was paid directly to Stree Consulting via international transfers.
• Two payments were made: USD 34,795 (about Rs 8.3 million) on April 15, 2016, and USD 868,000 (about Rs 31.3 million) on June 1, 2016. These payments covered mobilization costs, planning work, and travel expenses.

Lack of project progress:

• Despite the large payments, no master plan was delivered, and no project steps were undertaken. Jeetun described this as “Rs 39.7 million wasted, with no return, no tender process, and unclear legal procedures.”
• The Heritage City project never materialized. Heritage City Company Ltd was officially dissolved on April 29, 2020, and listed as “defunct.”
• The remaining Rs 123,214 in the company’s bank account was returned to the Treasury on January 28, 2020.

Minister Jeetun confirmed that Roshi Bhadain, who was Minister of Good Governance at the time, was responsible for approving the project. She announced that an investigation will clarify the situation. “This is a national shame. Bhadain, who now publicly criticizes others, was central to these irresponsible decisions,” she said.

Source: l’Express