Madam Speaker, in June 2020, in the context of COVID-19 pandemic, the previous Government agreed to implement, amongst others, a Wage Support Loan Scheme for Export Oriented (Goods) Enterprises, to be administered through the Development Bank of Mauritius Ltd. Out of a total of Rs8 billion which was made available by the Bank of Mauritius to the DBM, Rs5.9 billion has been utilised to service loan requests from its clients under the various COVID-19 Schemes. With regard to part (a) of the question, I am informed that the Bank of Mauritius provided a Special Line of Credit of Rs2 billion to the Development Bank of Mauritius to facilitate the implementation of the scheme. This line of credit carried an interest rate of 1.3% per annum and was repayable over a period of five years, including a six-month moratorium period. Of the Rs2 billion line of credit, Rs1.5 billion were subsequently on-lent to EOEs. In regard to part (b) of the question, I am informed by the DBM that the terms and conditions of the Scheme were as follows – (i) the loan amount was determined based on the wage bill of the enterprise; (ii) the interest rate of 2% per annum, and (iii) the repayment of up to 5 years including a moratorium of six months on capital. With regard to part (b)(i) of the question on security requirements, I am informed by the Development Bank of Mauritius that, in the context of the COVID-19 pandemic and given that the enterprises were in distress, the Board of the DBM approved the scheme whereby no collateral was requested as security from the beneficiaries of the loans contrary to the usual credit policy guidelines of the Development Bank of Mauritius or of any other bank. Madam Speaker, with regard to part (b)(ii) of the question, an amount of Rs1.5 billion was disbursed under the scheme to 43 enterprises. To date, Rs580 million have been repaid, comprising both capital and interest. Currently, 36 enterprises are in arrears for an amount of Rs335 million, that is, Rs299 million in capital and Rs36 million in interest. Madam Speaker, I am further informed that the Development Bank of Mauritius has not written off any liabilities for beneficiaries under the scheme. However, as at 30 June 2025, some Rs400 million of the total portfolio are classified as non-performing, of which Rs304 million relate to five companies that are either in liquidation or under receivership. The five companies are Star Knitwear Group Ltd, Jack Tellor International Limited, Beachwear Exports Co. Ltd, Les Ateliers Creatifs de L’Océan and Riverwalk Investment Ltd. As the House is aware, incidentally, Star Knitwear Group Ltd still owes the MIC a sum of Rs425 million. With regard to the impact on the DBM, such provisioning for non-performing loans has seriously affected the accounts of the Development Bank of Mauritius, which show a substantial loss of Rs388 million for the financial year 2024-2025, compared to the positive performance recorded over the past three financial years. Furthermore, the non-payment of the dues by the beneficiaries of the scheme will further impact on the DBM’s capacity to meet its repayment obligations to the Bank of Mauritius. Today, the Development Bank of Mauritius has been squeezed out of all essential funding preventing it to deliver on its core mandate because cronies of the previous Government have looted the bank. This is yet another case of broad daylight robbery of public funds under the previous Government, which has now endangered the financial standing of the Development Bank of Mauritius. Madam Speaker, I have given instructions for an enquiry to be carried out on the whole matter to find out all those responsible for this big financial scandal. As regards part (c) of the question, I wish to inform the House that in June 2020, the Ministry of Finance issued a letter of comfort to the Bank of Mauritius to the effect that Government will make its best endeavours to ensure that the DBM meets its obligations in respect to the line of credit. It also provides an underlying fiduciary guarantee that Government would be liable for all liabilities in case of default.

Thank you. Yes, Mr Beejan?

Thank you, Madam Speaker. In light of the alleged abuse of the Scheme by the former Government, will the hon. Prime Minister inform the House whether any action will be taken to chase those companies which have taken millions of rupees from the DBM and have winded-up after benefiting from the said scheme?

It is the intention of Government to do exactly that. In fact, for example, we know that one company has taken all its money and has relocated in South Africa. We are looking into all this.

Thank you. Time is up now! Thank you very much everyone. Hon. Members, the Table has been advised that PQ B/175 will be replied by the hon. Minister of Local Government and PQ B/176 will be replied by the hon. Minister of National Infrastructure. Now, we have also been advised that the following PQs have been withdrawn: B/156, B/159, B/161, B/162, B/163, B/165, B/166, B/167, B/168, B/169, B/170, B/171, and B/172. Thank you. Hon. Second Member for Grand' Baie, again! LODGING ACCOMMODATION PERMIT – APPLICATIONS (PAST SIX MONTHS) & INSPECTIONS