Business
Belle-Mare Waterpark up for Potential Sale as Rs 1.6 Billion Debt Cripples SIT
The Sugar Investment Trust (SIT) is exploring the potential sale of its flagship asset, the Splash N Fun Leisure Park in Belle-Mare, in a desperate bid to stave off financial collapse. The move comes as the organisation, which was founded to support small-scale sugar cane planters, is crippled by a staggering debt of Rs 1.6 billion and chronic losses.
The proposed sale of the former Waterpark is a stark illustration of the financial drift that has plagued the SIT.
The trust, which holds assets valued at Rs 3 billion, is now facing annual losses of Rs 150 million and has been technically insolvent since 2014.
The gravity of the situation was laid bare in Parliament in April by Agro-industry Minister Arvin Boolell, who warned the SIT was “on the verge of economic collapse.”
The trust’s primary sources of income—Rs 30 million from sugar cane cultivation and Rs 35 million from property rentals—are woefully inadequate to cover its financial obligations.
Debt repayments alone amount to Rs 115 million annually, a burden made heavier by partially paid interest charges. All of the trust’s remaining assets are reportedly mortgaged or pledged.
According to Minister Boolell, the SIT has seen a decade-long decline, with deficits across all its sectors, including land, leisure, and property.
The value per share has plummeted by more than 92 per cent since 2014, from Rs 15,000 to a mere Re 1.78.
The Minister highlighted significant irregularities, including the sale of over 5,000 acres of land without proper valuation, often at prices 40-60 per cent below market rate.
In some cases, land was sold to related parties who have since failed to make payments while continuing to exploit the properties.
The proceeds from these sales were allegedly diverted to fund real estate projects instead of being used to repay debts.
Further revelations of alleged misconduct have been referred to the Financial Crimes Commission (FCC).
Boolell claimed that senior officials presented fraudulent accounts to secure loans, including a Rs 360 million loan for the Waterpark’s modernisation that was allegedly misappropriated.
Another loan of Rs 12.8 million for cane planting from the Development Bank of Mauritius was reportedly never used for its intended purpose. A forensic audit is currently underway.
The Minister also pointed to the Rs 876 million investment in “The Core” building in Ebène, which was entirely debt-funded and has failed to generate sufficient returns to cover its interest payments.
Other irregularities include the extension of supplier contracts that expired in 2020 without a tender process, at rates above market price. The trust’s rent arrears are currently at Rs 50 million.
Originally opened as the Belle Mare Water Park in 2000, it was built by SIT Leisure Ltd, a private subsidiary of the SIT.
Despite ambitions to diversify the trust’s revenue, financial difficulties soon emerged. The park was forced to close in 2013 due to the SIT’s mounting debts.
Between 2018 and 2019, approximately Rs 350 million was injected for renovations, but the park continued to accrue monthly losses of Rs 2 million.
In May 2025, it was permanently closed for public safety reasons, with all employees being redeployed.
The potential sale is part of a broader strategy to stabilise the SIT, whose assets are compromised by a negative cash flow and operational overruns.
The sale may provide some debt relief, but it raises concerns about the preservation of the interests of small planters, who hold 95 per cent of the capital.
The ongoing forensic audit and FCC investigation could lead to further revelations and potential prosecutions.
Source: Defi Media
