Reply: (a) Financial Status of Polytechnics Mauritius Ltd The financial review of Polytechnics Mauritius Ltd (PML) revealed increasing operational and liquidity pressures in recent years, largely driven by rising operational expenditure, expansion of campus infrastructure, increased staffing commitments and dependence on FTES-related revenue streams. Despite fluctuations in revenue performance over the years, operational expenditure continued to rise significantly, putting pressure on the institution’s financial sustainability. While the institution recorded operational surpluses in 2022 and 2024, it recorded substantial operational deficits in 2023 and 2025. As at 01 July 2025, the institution had accumulated trade creditors of Rs101.9 million owed to 214 creditors and suppliers. In 2025, operational expenditure reached Rs374.95 million, while actual revenue stood at Rs288.97 million, resulting in an operational deficit of Rs85.98 million. For the period 2022 to 2025, cumulative operational expenditure exceeded cumulative revenue by approximately Rs87.02 million. The institution was also operating under significant fixed operational commitments, including annual rental costs of approximately Rs60 million for the Ébène and Rose-Belle campuses. In January 2026, a campus occupancy survey revealed that the average space utilisation rate across institutions was just 24.4%. Treasury Accounting Basis ('Rs Millions) Financial Year Budgeted Revenue Actual Revenue Variance Operational Expenditure Surplus / (Deficit) 201.88 231.27 29.39 229.54 1.73 291.22 253.35 (37.87) 271.72 (18.37) 395.50 396.94 1.44 381.33 15.61 232.40 288.97 56.57 374.95 (85.98) Total 1,121.00 1,170.53 49.53 1,257.54 (87.02) The Government had bailed out PML on 2 occasions: 1st in 2023, by allocating an advance of Rs60 million, and 2nd in June 2025, with an additional recurrent grant of Rs65 million to sustain its operational expenses. Had this Rs125 million cash injection not been made, PML would have been in a bankrupt position. (i) The number of Lecturers who have ceased to serve thereat since March 2026 to date As part of the operational review and restructuring exercise undertaken by Polytechnics Mauritius Ltd, the contracts of 38 employees were not renewed as of April 2026. The posts concerned were in the following categories – Post Total Academic Affairs Officer Associate Lecturer Associate Officer Attendant Attendant Driver Digital Marketing Officer Executive Officer Facilities Assistant Front Desk Officer HR Officer Internship and Placement Officer Lab Tech Lecturer Quality Assurance Officer Eight lecturers and Associate Lecturers have ceased to serve thereat since March 2026 comprising four resignations and four non-renewal of contracts. (ii) Particulars of increments not granted to lecturers with more than two years’ continuous service With a financial situation requiring immediate attention and action, the urgency was to offer permanent employment to those who had completed 2 years or more. Thus, the last batch of 48 employees was placed on permanent employment in April 2026 without any salary review based on the recommendation of an HR Consultancy exercise initiated in 2022. Prior to the same, 77 employees were placed on permanent employment upon completing their two years of the first fixed-term contract of employment at PML. Moreover, the salary of any grade of employee at Polytechnics Mauritius follows a range rather than a scale and incremental and it is anticipated that with the turnaround of the financial situation and Polytechnics Mauritius becoming resilient again, a salary review would be initiated that would eventually compensate the employees on permanent employment, particularly those who have not been provided an increase in the current exercise. The particulars of Lecturers and Associate Lecturers not granted increments with more than two years' continuous service are – Category Details of years of service Number Lecturer 2 years to 3 years More than 3 years Associate Lecturer 2 years to 3 years More than 3 years (b) Measures being envisaged to guarantee job security thereat and ensure the implementation of remuneration packages as per the terms and conditions of contracts of employment In response to rising operational costs, underutilised campuses with uneven enrolment patterns, weak programme viability in selected clusters, and identified governance gaps in workload management, procurement, and quality assurance, Management had established a Monitoring Committee in January 2026 to conduct a comprehensive institution-wide review. The Committee’s mandate is to assess operational, academic, financial, and governance practices, and to implement targeted corrective measures to restore efficiency, sustainability, and institutional performance across PML. Rather than pursuing isolated or ad hoc interventions, the Monitoring Committee adopted a structured, strategic approach, clustering reforms into five priority pillars, namely – (1) Financial Stability and Revenue Expansion; (2) Workforce Efficiency and Teaching Delivery; (3) Academic Quality and Programme Viability; (4) Governance, Quality Assurance and Compliance, and (5) Campus and Resource Rationalisation. Each pillar was assigned clear ownership and accountability to ensure coordinated execution, effective monitoring, and measurable outcomes. The work of the Monitoring Committee is already converging around several high-impact priorities – Financial Stability and Revenue Expansion – (1) New revenue streams through short courses and corporate training; (2) Tight cash flow controls and cost discipline; (3) Clear enrolment targets linked to financial planning. Workforce Efficiency and Teaching Delivery – (1) Verified academic workload data; (2) Formal oversight of part-time staffing; (3) Revised organisational structure and clearer accountability. Academic Quality and Programme Viability – (1) Programme cost-benefit and viability analysis; (2) Curriculum alignment with industry needs; (3) Strengthened moderation and assessment systems. Governance, Quality Assurance and Compliance – (1) Regular audits of processes and standards; (2) Statutory payment discipline; (3) Transparent procurement controls. Campus and Resource Rationalisation – (1) Full utilisation reviews across all campuses; (2) Evidence-based consolidation and restructuring proposals. Collectively, these initiatives reflect the Monitoring Committee’s shift from fragmented corrective actions to a coordinated institutional turnaround framework, underpinned by clear strategic priorities, defined accountability, and data-driven reviews aimed at stabilising finances, improving efficiency, strengthening academic relevance, enhancing governance, and optimising resources with the Board being kept regularly informed as implementation progresses and measurable outcomes are achieved. In spite of a compelling financial situation, Polytechnics Mauritius has stood by its commitment towards its statutory obligations and ensuring that the salaries and benefits of its staff are paid on time as required by law. Moreover, it has also been compliant with Mauritian Labour Laws in paying the compensations as decided by the Government. Going forward, Polytechnics Mauritius will continue to stand by its commitments regarding salaries, benefits, and compensation, ensuring that staff are remunerated on time and in accordance with their contracts of employment. The financial situation of Polytechnics is anticipated to result in a turnaround in due course, and Polytechnics Mauritius is also envisaging, in time, through the reforms initiated, to become resilient and sustainable. Thus, overall, guaranteeing job security and respecting remuneration packages at Polytechnics Mauritius would eventually lead to a salary review being implemented to compensate staff appropriately and in compliance with Mauritian labour laws. In the meantime, the requirement is for stronger institutional governance to be put in place and monitored to eventually restore employee confidence and operational stability. Polytechnics Mauritius Ltd remains fully committed to its national mandate of developing skilled, industry-ready graduates and contributing meaningfully to the socio- economic development of Mauritius through accessible, high-quality technical and professional education. The Board and Management recognise and value the contributions of all employees who have participated in the institution's growth and development over the years. However, the findings from the Monitoring Committee exercise revealed serious financial, operational, and governance deficiencies that required urgent corrective action to safeguard the institution's long-term viability and credibility. The reforms were, therefore, considered necessary to strengthen expenditure control, improve operational efficiency, reduce recurrent costs and restore the long-term financial sustainability of Polytechnics Mauritius Ltd. CALODYNE – ILLEGAL QUARRYING WORKS