Airport Holdings Ltd Chief Quits Board Over ‘Conflict of Interest’ Row

Kishore Beegoo has resigned from the board of Air Mauritius’s parent company, AHL, and six of its subsidiaries, citing decisions that he believes could “prejudice the governance” of the group. Mr. Beegoo, in a letter dated 26th November to the AHL Company Secretary, strongly denounced the appointment of an Executive Chairman who is currently engaged in a Rs 38 million legal dispute against Air Mauritius, claiming the move creates a “potential conflict of interest.”

Allegations of Conflict and High Pay

The former chairman of Air Mauritius states he raised his concerns at a board meeting on 7th November, demanding that the incoming Executive Chairman, named as Megh Pillay, must withdraw his legal action and lower his proposed salary, which Mr. Beegoo estimates to be nearly Rs 810,000 per month.

According to the outgoing director, the presence of a top official involved in litigation against a subsidiary threatens AHL’s integrity and compromises the confidence of employees and stakeholders.

Mr. Beegoo stated that he prefers to step down rather than “assume the consequences of prejudicial decisions.”

He previously served on the boards of several group companies, including Mauritius Duty Free Paradise, Ground Handling Services, and Rodrigues Duty Free Paradise, “on a voluntary basis” without remuneration.

He recalled that as a former Air Mauritius chairman, he had personally instructed the legal department not to reach an agreement with the plaintiff despite facing “political pressure.”

Risk of Financial Crimes Commission Investigation

The resignation letter listed five key risks the appointment posed to directors, including the obligation to act in the company’s best interest, exposure to political interference, Air Mauritius’s fragile financial situation, and the impossibility for the airline’s lawyers to effectively defend a case against their own superior.

Mr. Beegoo warned that approving the contract would place directors in a difficult position in the event of an investigation by the Financial Crimes Commission (FCC), particularly following a change in government.

He also called for greater restraint on public official salaries at a time of national financial difficulties.

Executive Chairman Rejects ‘Insinuations’

In response, Executive Chairman Megh Pillay strongly rejected the allegations and insinuations.

“I wish to reaffirm that the principles of good governance and professional integrity guide all my actions and have always guided my career,” Mr. Pillay said, adding, “I have no lessons to receive in this regard—least of all from those whose own behaviour raises serious questions of conflict of interest. The allegations made in this letter are entirely baseless.”

Regarding his pay, Mr. Pillay stated: “I have never solicited, negotiated, or discussed any salary or contractual condition for taking on the leadership of the country’s second-largest conglomerate.” He noted that he has been exercising his duties for over two months without setting any condition.

Mr. Pillay concluded by saying the priority is to “restore AHL and Air Mauritius to a sustainable path of health,” adding that he accepted the role in the interest of the group and the entire Mauritian airline sector, which remains in a fragile situation.

Source: l’Express