FCC: Former CNT Chief Charged Over Rs22 Million Tyre Procurement Scandal

The former Director General of the National Transport Corporation (CNT) has been formally charged with corruption following a high-profile investigation into a multi-million rupee procurement contract.

Gunputh Rao Ramah, 57, appeared before the Financial Crimes Division of the Intermediate Court on Tuesday, 23 December. He faces charges of a “public official using his office for gratification” under the Prevention of Corruption Act (PoCA).

The case, which marks one of the first major formal charges lodged by the Financial Crimes Commission (FCC), involves a Rs 22 million contract for bus tyres.

Substandard Performance

The investigation centres on an agreement with supplier DSS Trading Ltd. While contract specifications required tyres to last between 60,000 and 70,000 kilometres before their first retreading, internal records revealed a staggering disparity.

Investigators found that some tyres were pulled from service after covering as little as 4,000 to 11,000 kilometres.

Engineering audits confirmed that the actual lifespan of the equipment was significantly lower than the standards promised in the tender.

Alleged Obstruction

The prosecution’s case hinges on allegations that Mr Ramah actively protected the supplier at the expense of the public purse. According to the FCC:

• The CNT was contractually entitled to claim Rs 1,919,836 in liquidated damages due to the substandard performance.
• In May 2023, the former Director General allegedly blocked these penalty claims.
• Witnesses claim Mr Ramah instructed staff not to submit formal reports regarding the failures.

“Preferential Treatment”

The FCC further alleges that the processing of the file was intentionally delayed to ensure legal deadlines for claims against the supplier lapsed. This has led to formal suspicions of “preferential treatment” for the contractor.

Mr Ramah, described as a protégé of the previous Jugnauth/Ganoo administration, has categorically denied all charges.

While he has been under investigation since January, the Director of Public Prosecutions (DPP) only moved to formalise the charges this week after studying the file.

A trial date is expected to be set early next year. The case is part of a wider crackdown on fraud and corruption, with total prejudice across various ongoing investigations estimated at Rs 30 billion.

Source: Le Mauricien