Evaco Ltd Enters into Administration Putting Rs 100 Million Public Funds at Risk

A total of Rs 100 million in public funds injected by the Mauritius Investment Corporation (MIC) has been put at risk following the collapse of luxury property developer Evaco Ltd into administration.

The Stock Exchange of Mauritius announced on 28 May that the group had been placed under the care of receivers and managers, triggering serious questions over the recovery of state funds.

The central bank-backed MIC disbursed the Rs 100 million on 17 October 2024 to support a flagship development, just 18 months before the company’s financial failure.

Massive Bank Exposures Revealed

The MIC is not the only major institution facing significant exposure to the collapsed property group. State Bank of Mauritius (SBM) holds outstanding loans totaling approximately Rs 2.4 billion with Evaco, with repayment dates extending until 2030.

The insolvency proceedings themselves were triggered by Silver Bank—which is currently under administration itself—after it demanded the immediate repayment of Rs 39.6 million from Evaco.

Funds Tied to Luxury Megaproject

The state’s Rs 100 million investment was specifically earmarked to fund an integrated shopping mall within Evaco’s signature Cap Marina project in Cap-Malheureux. The total cost of the shopping mall is estimated at around Rs 1.2 billion.

The wider Cap Marina development is a sprawling 22-hectare luxury estate designed to feature more than 320 high-end residential units.

Evaco had previously estimated the total value of the project at approximately Rs 15 billion upon full completion and sale.

Around 70% of the units are reported to have been sold, with nearly 200 clients having already signed financial completion guarantees.

Investment Amid Pre-Existing Tensions

The MIC was established in 2020 during the pandemic as an investment vehicle backed by the Bank of Mauritius, using central bank reserves to rescue strategically important companies facing financing crises.

However, sources close to the matter reveal that Evaco was already under severe financial strain when the MIC injected the public money in late 2024.

Friction between Evaco and one of its partner banks had been mounting since late 2023, characterized by:

• Disbursement bottlenecks
• Payment delays
• Deepening cash flow problems

Administrators Take Control

The ultimate fate of the public funds now rests with the newly appointed receivers and managers, Mushtaq Oosman and John Chung.

Their immediate task is to assess Evaco’s exact financial position, catalog its assets, and map out its total liabilities.

The administrators will specifically investigate the actual progress made on the shopping mall and trace exactly how Evaco utilized the Rs 100 million provided by the MIC.

At this stage, the MIC has declined to comment on the exact conditions of its exposure or what guarantees, if any, were secured against the investment.

Source: Defi Media