Madam Speaker, I thank the hon. Member for asking this question. This is yet – every week we see this – another example of cronies of the previous government benefitting from contracts awarded by public bodies. I am informed by the Economic Development Board (EDB) that its head office shifted to the 7 Exchange Square Building in Ebene in December 2022. Now, a tender exercise was launched in October 2018 even before the building was constructed. The tender exercise was started as if they knew the building would be there. All the other bidders in the tender exercise were found to be non-responsive and only PSH Investment Ltd was qualified and awarded the contract.

22 As regards part (a) of the question, the EDB signed a lease agreement with PSH Investment Ltd, which is the owner of the building, on 09 August 2019 for 5,000 square metres of office space and 130 parking slots. As per the lease agreement signed, the building was to be delivered in December 2020 and rent payable from February 2021, but the office space was actually delivered in October 2022, that is, a delay of almost 2 years. On 30 May 2024, the EDB signed a second lease agreement with PSH Investment Ltd for an additional office space of 170 square metres at the ground floor of the same building and also for 2 additional parking slots. Madam Speaker, I am informed by the Corporate and Business Registration Department that PSH Investment Ltd is fully owned by NG Holdings Ltd and the sole shareholder of NG Holdings Ltd is Mr Vinash Gopee. Concerning part (b) of the question, the EDB started paying rent for the office building as from December 2022 when it started occupying the building. The total amount of rent paid by EDB from December 2022 to date is Rs104.9 million. In addition, an amount of Rs7.2 million has been paid for syndic fees. Regarding part (c) of the question, the House may wish to note that the main conditions of the lease agreements are as follows – (i) the minimum lease period for the first lease agreement is 10 years and for the second lease agreement, it is 8 years and 6 months; (ii) the monthly rental is Rs625, exclusive of VAT, per square metre for the first lease agreement and Rs1,147 per square meter for the second lease agreement. In other words, the prices have jumped; (iii) as from December 2027, the rental must be reviewed every 2 years based on the increase in the Consumer Price Index; (iv) up to November 2027, the contract may be terminated by giving 4 months’ notice, but the EDB must pay the rental from the date of cancellation up to the expiry of the initial lease period; and (v) after November 2027, the contract may be terminated by giving 4 months’ notice and the EDB will then not be required to pay any further rental.

23 I am tabling a copy of the two lease agreements.

Yes, hon. First Member for La Caverne and Phoenix! WAKASHIO SHIPWRECK – INSURANCE COMPENSATION