Mr Deputy Speaker, Sir, from the outset, I wish to inform the House that all files relating to the Metro Express Project were being administered at the level of the Prime Minister’s Office until the day I took office under this Government – then all files came over to Ministry of Land Transport. Mr Deputy Speaker, Sir, after perusal of those files available at my Ministry, it has been brought to my attention that the Metro Express Ltd had recourse to a restricted bidding exercise where three bids were received for commercialisation of advertising space, that is, the entire extent of the Metro Express Ltd meaning inside and outside the trains, stations, buildings, website and portals, and any Metro lines across the island that may be added to Phase 1 and 2, – meaning Phase 3, Phase 4, Phase 5 up to Phase 10, if ever there is one; that is the contract that has been signed. Here, I wish to point out taking into consideration the value of the procurement that is above Rs75 m. over first years according to the agreement, an open advertising bidding process would have been more appropriate and beneficial to the company.

50 Mr Deputy Speaker, Sir, after scrutiny of the available records, it has been brought to my attention yesterday that the contract signed by the Metro Express Ltd was not according to the final vetted document by its legal advisor, that is, the Attorney-General’s Office. This is a matter of great concern. Following immediate consultations thereto, the latter has informed that the legal implications of not following the legal advice are various and that each clause would now have to be examined to gauge the effect of non-compliance. Mr Deputy Speaker, Sir, I am further informed that not complying to the advice of the Attorney-General’s Office has led to abusive clauses in the duration of the contract, that is, – 1. a first extension of two years over the initial contract of five years subject to a satisfactory report by an independent evaluator, and 2. a further renewal of seven years to the sole discretion of the contractor, namely Alliance Media, subject to no breach to the terms and conditions. All of the clauses that were struck out by the legal adviser, but somehow found its way into the final document, was signed on 28 August 2020 with Alliance Media by Mr N. K. B. (Nayen Kumar Ballah), everybody knows him, he is a public figure and witnessed by Mr D. M., the General Manager that bolted away, Mr Das Mootanah, the then Chairman and the CEO of MEL, respectively. It is this clause that is most detrimental to the Metro Express Ltd. Mr Deputy Speaker, Sir, this in my opinion is a clear case of irregularity by the then management of Metro Express Ltd who will have to answer thereto. I intend to refer the matter to the new Board of the Metro Express Ltd for appropriate actions it deems necessary. Mr Deputy Speaker, Sir, regarding the Bid Evaluation Committee, I have to mention that the Ministry of Finance who has a representative of the Board on Metro Express Ltd considered it not appropriate that its representative be part of that committee. Nevertheless, the Bid Evaluation Committee chaired by Mr K. Beekharry (also known as Dev Beekharry) proceeded with the exercise. I am, Mr Deputy Speaker, Sir, tabling the full composition of the Bid Evaluation Committee. Mr Deputy Speaker, Sir, in so far as revenue from the contract is concerned, Alliance Media shall pay to Metro Express Ltd a monthly rental which is greater of the fixed minimum amount of or a percentage of the net advertising revenue. The incremental income to be paid are as follows – 1. up to Rs50 m., billing and collected per year, 51% payable to Metro Express Ltd;

51 2. from 50 to 70 m. billing and collected per year, 65% payable on the additional value to Metro Express Ltd 3. above Rs70 m. billing and collected per year 75% on that additional amount of value to Metro Express Ltd. However, it is unfortunate that there is no provision in the contract to allow Metro Express Ltd to ascertain how much the contractor is actually deriving from the advertising contract, thus potentially affecting Metro Express Ltd income share, I am further informed. Mr Deputy Speaker, Sir, according to information received from Metro Express Ltd, a total of Rs34,265,246 has been paid for advertising over the last four years as per the agreement up to now including Rs29,215,118 as minimum guaranteed renumeration and Rs5,050,128 as income share which is directly proportional on the income derived by the contractor. I am informed that it is when the new board of Metro Express Ltd has been set up under the chairmanship of Dr. Arvin Soonarane, one of the things they looked at was this particular contract. Metro Express Ltd issued a letter on 14 April 2025 to Alliance Media, requesting for details and evidences supporting revenue to Metro Express Ltd. From then onwards, it has become evident that something was not quite correct, Metro Express Ltd has since sought legal advice from Attorney-General’s Office. Thank you.

Yes!

Je vous remercie, M. le président. Le ministre peut-il indiqué à la Chambre si son ministère envisage de résilier ce contrat avec effet immédiat contenu des sommes mirobolantes perçues ? Merci.

Yes, as a matter of fact, like I mentioned, legal advice was sought yesterday and Metro Express Ltd has been told that should Alliance Media not disclosing schedule of net advertising revenue calculations on a quarterly basis, which I believe should be verifiable because it can declare any sum and then just pay a percentage of it – it has to be verifiable, then it is in breach of the contract.

Ma dernière question !

Okay, one last!

52

Je vous remercie M. le président. Puis-je demander à l’honorable ministre si son ministère envisage de saisir la FCC afin qu’une enquête approfondie soit menée pour déterminer s’il y a eu favoritisme pour l’obtention de ce contrat ? Merci.

Yes, like I said in a first instance, I will refer it to the Board because the question is fresh, yesterday we discussed extensively about it but I believe if the Board is convinced, the full file which is now resting at the Ministry – I have asked that the file remain at the Ministry – be referred to the Financial Crimes Commission.

The hon. Third Member for Grand’Baie and Poudre d'Or! CAP MALHEUREUX - FOOTBALL GROUND