The Public Sector Debt (PSD) comprised debts of the ...



2.1 Statement of Assets and LiabilitiesThe Finance and Audit Act requires the Accountant General to sign and submit to the Director of Audit, within six months of the close of every financial year, Statements showing fully the financial position of Mauritius.The Accounts of the Republic of Mauritius for the financial year ended 31 December 2014 comprise a Statement of Assets and Liabilities and a set of other Statements. The main Statement is Statement A - Statement of Assets and Liabilities.2.1.1 Five Years Summary of Assets and LiabilitiesAssets and liabilities for the five years to 31 December 2014 are shown in Table 2-1.Table 2-1 Five Years Summary of Assets and LiabilitiesYear ended 31 December2010Rs million2011Rs million2012Rs million2013Rs million2014Rs millionAssetsCash and Bank Balances3,142.84,014.33,850.19,645.817,396.7Advances1,430.91,372.61,346.52,424.72,523.1Investments7,424.620,030.422,120.219,216.816,337.3IMF-SDR Deposit3,762.23,725.1Total Assets11,998.325,417.327,316.835,049.539,982.2LiabilitiesAccounts Payable4,063.44,072.34,165.14,406.94,603.1Government Debt76,238.574,217.968,613.068,683.175,519.1Deposits985.11,181.31,403.91,408.21,369.0IMF-SDR Allocations4,492.94,448.6Total Liabilities81,287.079,471.574,182.078,991.185,939.8Net Liabilities(69,288.7)(54,054.2)(46,865.2)(43,941.6)(45,957.6)Represented by:Special Funds6,256.19,890.49,248.310,963.87,783.1Accumulated deficit in the Consolidated Fund(75,544.8)(63,944.6)(56,113.5)(54,905.4)(53,740.7)(69,288.7)(54,054.2)(46,865.2)(43,941.6)(45,957.6)Cash and Bank Balances as of 31 December 2014 include cash in hand, cash remitted to Ministries/Government Departments and cash balances with banks and agents, both locally and overseas.Advances are made under the authority of Warrants issued under Section 6(1) of the Finance and Audit Act. They comprise mainly motor cars and motor cycles advances in favour of Government employees, as well as those of Statutory and Other Bodies, as stated in Statement G – Detailed Statement of Advances.Investments comprise shares in quoted and unquoted companies, units, equity participation, fixed deposits and foreign investments.IMF-SDR Deposit represents the rupee equivalent of Special Drawing Rights allocation of SDR 81,061,549 from the International Monetary Fund (IMF) and was held at the Bank of Mauritius.Accounts Payable consists of interests due as of 31 December 2014 in respect of Central Government Debts, which comprise Government Bonds, Mauritius Development Loan Stock, Treasury Bills, Treasury Notes, Government of Mauritius Savings Certificates/Notes/Bonds and External ernment Debt comprises mainly Treasury Bills and Treasury Notes issued by Bank of Mauritius on behalf of Government under Sections 5 of the Public Debt Management Act, and mopping up of liquidity instruments which were issued for the first time during financial year 2014. Deposits are monies deposited with the Government by individuals and organizations under Section 8 of the Finance and Audit Act.IMF-SDR Allocation represents the rupee equivalent of the total SDR allocation of SDR 96,805,549 made to Mauritius by IMF.Special Funds comprise monies deposited with the Government by the various Funds set up under Section 9 of the Finance and Audit Act. 2.1.2 Account of Revenue and Expenditure of the Consolidated FundThe Consolidated Fund was established by Section 103 of the Constitution of the Republic of Mauritius.In accordance with Section 3 of the Finance and Audit Act, the Consolidated Fund is credited with all revenues collected on behalf of Government and charged with expenses incurred on the authority of Warrant issued by the Minister of Finance. The transactions for the financial year ended 31 December 2014 closed with a surplus of Rs 943.5 million. Table 2-2 shows the revenue and expenditure for the past five financial years.Table 2-2 Revenue and Expenditure for Financial Years 2010-2014Financial YearRevenueRsExpenditureRsSurplus/(Deficit) Rs201081,313,164,04279,894,063,5941,419,100,448201187,653,059,83987,816,218,502(163,158,663)201295,680,475,89289,101,477,7846,578,998,1082013105,033,770,981102,924,073,4752,109,697,5062014107,636,866,249106,693,317,662943,548,587The accumulated deficit of the Consolidated Fund amounted to Rs 53.74 billion as of 31 December 2014.2.2 Statement of InvestmentsDetails of investments made by Government are stated in Statement F – Statement of Investments. These investments comprised Shares in Quoted and Unquoted Companies, Units, Equity Participation, Fixed Deposits and Other Investments. As of 31 December 2014, the total investments (at cost) were Rs 16,337,317,302 as shown in Table 2-3.Table 2-3 Investments as of 31 December 2014Cost20142013DetailsRsRsQuoted Shares144,853,991144,853,991Units75,789,77175,789,771Unquoted Shares8,531,450,9558,535,404,261Equity Participation3,971,685,0603,971,685,060Sub Total12,723,779,77712,727,733,083Other Investments 3,613,537,5256,489,039,039Grand Total16,337,317,30219,216,772,122Other investments comprised long term placement with DBM Ltd of Rs 644 million, EURO placement with MPCB Ltd of Rs 348 million, Foreign investments of EUR 35 million(Rs 1.4 billion) and US $ 40 million (Rs 1.2 billion) in Fixed Rate Step-up Notes and Single Fixed Rate Coupon respectively and Rs 6 million fixed deposit with Mutual Aid in respect of the Morris Legacy Fund.Bank deposits previously classified under ‘Investments’ have been included under Cash and Bank Balances for financial year 2014 and figures for financial year 2013 have been restated in Statement of Assets and Liabilities.2.2.1 Equity ParticipationA sum of Rs 3,971,685,060 was stated as Equity Participation, and represented Government’s contributions or participation of capital in 10 entities comprising mainly statutory bodies. 2.2.2 Return on InvestmentsThe budgeted and actual dividends received during the past five financial years are given in Table 2-4.Table 2-4 Dividend received during Financial Years 2010-2014Financial YearBudgetedActualRsRs20102,592,800,0001,787,259,7992011338,000,000704,044,74820122,477,000,0001,039,755,81920132,633,000,0001,478,778,37620141,295,000,000942,836,943For the current financial year, a total of Rs 1,295,000,000 was budgeted as dividends receivable from these entities and the actual amounts received during the same period were only Rs 942,836,943 compared to Rs 1,478,778,376 for previous financial year.Details of dividends received for the two financial years 2013 and 2014 are shown in Table 2-5.Table 2-5 Dividends received during Financial Years 2013 and 2014DetailsInvestment at Cost31.12.2014RsDividend Received2014RsDividend Received2013RsQuoted SharesSBM Bank (Mauritius) Ltd41,058,57385,229,90659,810,460Air Mauritius Ltd99,178,3484,282,329-New National Investment Trust 4,604,4122,206,587882,635Alteo Ltd840360338The MDIT Trust Co Ltd276New Mauritius Hotels Ltd24048-UnitsNMF General Fund4,002,000623,926604,489NMF Property Trust15,000,000455,028597,255Unquoted SharesMauritius Telecom Ltd63,625,174670,609,334750,777,053Airports of Mauritius Company Ltd1,607,774,970119,857,310544,111,073Air Mauritius Holding Ltd87,354,60811,433,138-State Informatics Ltd32,800,0004,750,5222,972,012Mauritius Housing Company Ltd59,161,63433,190,81436,499,815Sugar Investment Trust19,999,9802,546,4434,873,911Port Louis Fund55,979,0905,038,118 4,478,327PTA Reinsurance Company (ZEP-RE)3,783,716-507,498FIDEL 162832AFREXIM Bank10,776,420-3,081,122African Reinsurance Corporation28,970,8922,505,121-United Investments48154-Overseas Telecommunications Services28,858-9,235,200Alma Investments Co ltd-89689Shelter Afrique3,439,811106,874-Equity ParticipationBank of Mauritius2,000,000,000-60,347,061Total942,836,9431,478,778,376Department’s ReplyThe Accountant General informed that actual dividend received is dependent upon the actual financial performance of the institutions /enterprises concerned.2.2.3 Investments Yielding No Returns in 2014Investment totalling Rs 4.01 billion did not yield any return for financial year 2014 only. Details of these investments are given in Table 2-6.Table 2-6 Investments Yielding no Returns in 2014Year of InvestmentsCost PriceRsCargo Handling Corporation Ltd1983-2013200,600,000AFREXIM Bank199310,776,420COVIFRA LteePrior 20012,052,356Overseas Telecommunications ServicesPrior 200128,858Development Bank of Mauritius LtdPrior 2001 and 2005 - 2009216,250,000Mauritius Shipping Corporation LtdPrior 2001 and 2011135,493,000Editions De L’Ocean Indien Ltee2000 and 20011,140,000PTA Reinsurance Company (ZEP-RE)Prior 20013,783,716State Investment Corporation Ltd2001 and 201285,000,000 United Docks LtdPrior 20019,600Stafford Mayer Company South Africa LtdPrior 200116Bank of Mauritius2005 and 20112,000,000,000National Real Estate Ltd30.06.09500,000,000Les Pailles International Conference Centre2006 - 2009652,688,656Film Confluences Co. Ltd20131,000,000Knowledge Parks Ltd201325,000New DBM Ltd2013200,000,000Total4,008,847,6222.2.4 Investments not Yielding any Return Since AcquisitionInvestments (at cost) totalling some Rs 6.6 billion and representing approximately 40 per cent of total investments, did not yield any return at all, since they have been acquired. Details are given in Table 2-7.Table 2-7 Investment not Yielding any Return Since AcquisitionYear of InvestmentCost Price RsQuoted SharesBlue Life Ltd20131,976Unquoted SharesAfrican Development Bank 1992-1993553,289,772Airports of Rodrigues 2000-2008538,310,200Business Parks of Mauritius Ltd2001-20091,105,552,722Discover Mauritius Ltd 2006-2007500,000Eastern and Southern African Trade & Development Bank Ltd1990-1991157,868,426Enterprise Mauritius2004-200579,782,747Events Mauritius Ltd2006-20071,800,000Mauritius Educational Development Company Ltd2000-200116,000,000Multi Carrier Mauritius Ltd2001-2004134,000,000Mauritius Post and Cooperative Bank Ltd2001-2005137,166,400National Housing Development Company Ltd2007-2008200,000,000SME Partnership Fund2005-200650,000,000State Land Development Company Ltd2001-2007385,024,900State Property Development Company Ltd2001-2004663,000,000The Mauritius Post Ltd2001-2005371,111,200Tourist Villages Company Ltd2007-2009170,000,000Equity ParticipationMauritius Cooperative Livestock Marketing Federation1992-1993450,000Mauritius Cane Industry Authority (ex-Mauritius Sugar Authority and ex-Mauritius Sugar Terminal Corporation)1984-1985173,803,732Rodrigues Educational Development 2001-200280,000Rose Belle Sugar Estate1987-199698,844,218Central Electricity Board 1992-1993670,856,197Central Water Authority 1993-2012962,250,913National Transport CorporationPrior 01.07.0150,000,000State Trading Corporation Prior 01.07.01400,000Civil Service College201215,000,000UnitsNIT Local Equity Fund 03.03.0838,370,116NIT Global Opportunities Fund03.03.0818,417,655Total6,591,881,174Department’s ReplyThe Accountant General stated that investments in the public sector have different objectives. Some of the investments made were for social purposes with no expectation of return in the form of cash or dividend, for example NHDC, MCIA, CEB, CWA.However, a dividend policy framework is being developed for those companies which are either Government owned or controlled taking into account their respective cash flow requirements, investment strategy, loan arrears, overdraft with banks.2.3 Special FundsSection 9 of the Finance and Audit Act provides for the creation of Special Funds. Special Funds are monies which are not raised or received for general public purposes, but deposited with the Government for specific purposes. Special Funds are built up in different ways as follows:Donations and legacies e.g. De Chazal Maternity Home Fund.Money transferred from expenditure e.g. Food Security Fund.Monies levied from other sources e.g. Build Mauritius Fund.The characteristics of the Special Funds are that:they do not form part of the Consolidated Fund,they are administered in the manner provided by a law or instrument creating them,in the absence of any such provision in the law or instrument, the Minister of Finance, may by regulations, provide for the administration of such Special Fund, or for the better administration of such Special Fund, as the case may be,money standing to the credit of Special Funds may be invested and any interest or dividend received is to be credited to the accounts of that Special Fund and becomes in all respect part of that Special Fund.All Special Funds are either regulated by an Act or a Regulation made under the Finance and Audit Act. The Director of Audit is responsible for the audit of 24 Special Funds which are differently regulated as shown in Appendix IA. Some are required to submit accounts not later than three months after the end of each financial year, while for others there is no such deadline. Special Funds are required to prepareannual statements of the receipts and payments for a financial year; anda balance sheet made up to the end of that financial year showing the assets and liabilities of the Fund.A total of 16 financial statements in respect of eight Special Funds have not yet been submitted for audit purposes. Details are at Appendix IB. 35 financial statements in respect of 15 Special Funds were already certified but not yet laid before the National Assembly as shown in Appendix IC.2.4 Statement of Public Sector DebtThe Public Sector Debt (PSD) comprised debts of the Central Government raised both internally and externally for financing development projects, debts of Public Enterprises guaranteed by Government and debts of Public Enterprises not guaranteed by Government. All these debts are detailed in a separate Statement of Public Sector Debt.As of 31 December 2014, PSD amounted to Rs 237.7 billion, compared to Rs 219.8 billion for the financial year ending 31 December 2013. Details are given in the Table 2-8.Table 2-8 Public Sector Debt Debt Category31 December 201431 December 2013RsRsGovernment DebtDomestic165,285,650,000149,959,430,000External51,429,001,60947,092,645,001216,714,651,609197,052,075,001Guaranteed by GovernmentAgencies Extra Budgetary Units23,851,05023,851,050Public Enterprises12,998,623,33712,766,319,65913,022,474,38712,790,170,709Not Guaranteed by GovernmentAgencies Extra Budgetary Units-291,397Public Enterprises7,963,338,18510,024,731,1347,963,338,18510,025,022,531Total237,700,464,181219,867,268,241Domestic Debt is made up of obligations which include proceeds from issues of Treasury Bills, Treasury Notes, Government Bonds, Mauritius Development Loan Stocks, GOM Savings Certificates, GOM Savings Notes, and GOM Savings Bonds.External Debt refers to Loans from Foreign Governments and Institutions, Government Securities held by Non Residents and IMF SDR Allocations.2.4.1 Domestic Government DebtMaturity Structure of Domestic Government DebtDomestic Government Debt, excluding Government securities for the mopping up of excess liquidity of Rs 5.4 billion, comprised 67.26 per cent of total public debt figure as of 31 December 2014. It comprised Treasury Bills of Rs 22.65 billion, Treasury Notes of Rs 47.91 billion, MDLS of Rs 7.53 billion and Government of Mauritius Bonds of Rs 81.77 billion.An indication of the years of maturity of the outstanding Domestic Government Debt as of 31 December 2014 is given in Table 2-9.Table 2-9 Maturity Structure of Domestic Government DebtYears of MaturityTreasury BillsTreasury NotesMDLSBondsTotalPercentageRs mRs mRs mRs mRs m201522,652.913,855.5 1,688.1 7,660.145,856.628.68201614,610.02,740.7 5,913.6 23,264.3 14.55201719,445.0 31.07,175.026,651.016.6820181,573.38,825.010,398.36.502019 and Onwards1,503.8 52,195.753,699.533.59Total22,652.947,910.57,536.981,769.4*159,869.7100.00*excluding GOM Securities issued for the mopping up of excess liquidity of Rs 5,415,950,000.The maturity profile of the Domestic Government Debt indicates that 28.6 per cent of total debt would mature within one year and some 14.5 per cent of the outstanding debts would fall due in 2016. Government would require some Rs 45.8 billion to settle its domestic debt during period ending 31 December ernment of Mauritius Securities issued for mopping up of excess liquidityIn normal situations, the Bank of Mauritius (BOM) intervenes in case there is a surplus liquidity in the economy. However, it was for the first time that BOM, as agent of Government issued securities on behalf of Government for a total nominal value of Rs 5.4 billion, to mop up the excess liquidity. These securities comprised GOM Treasury Bills, GOM Savings Certificates, GOM Savings Notes, and GOM Savings Bonds.Total proceeds of Rs 5.4 billion from the issue of the above instruments, were deposited with BOM and included in the Statement of Assets and Liabilities under ‘Cash and Bank Balances’.The total interest payable would amount to some Rs 372.7 million.2.4.2 Public Sector Debt Figures for Past Five YearsThe Public Sector Debt for the five financial years to 31 December 2014 are given in Table 2-10.Table 2-10 Public Sector Debt for Financial Years 2010 to 2014Financial YearPublic Sector DebtIncrease over the previous yearIncrease over the previous yearRsRs%*2010172,814,286,6234,260,619,4352.52*2011185,187,034,36612,372,747,7437.15*2012194,486,933,4309,299,899,0645.022013219,867,268,24125,380,334,81113.052014237,700,464,18117,833,195,9408.11* The figures for PSD for 2010 to 2012 exclude IMF SDR allocationsOver the past five financial years, Public Sector Debt has been increasing. The figure for 2014 has increased by Rs 64.89 billion when compared to Rs 172.8 billion for 2010. This represented an increase of 37.5 per cent over the past five years.2.4.3 Public Sector Debt and Gross Domestic ProductPSD and PSD as a percentage of Gross Domestic Product (GDP) for the four financial years to 31 December 2014 are given in Table 2-11.Table 2-11 Public Sector Debt and Gross Domestic ProductPSDRs billionGDP Rs billionPSD as Percentage of GDP %31 December 2011*189.6323.058.731 December 2012*199.0343.857.931 December 2013 219.9366.260.031 December 2014 237.7386.361.5*For meaningful comparison, MOFED has adjusted the time series data for PSD in line with the amendments made in the computation thereof As of 31 December 2014, the total Public Sector Debt was Rs 237.7 billion, that is an increase of Rs 17.8 billion from the previous financial year figure of Rs 219.9 billion. The PSD as a percentage of GDP has also increased to 61.5 per cent as of 31 December 2014 compared to 60 per cent as of 31 December 2013.For the computation of the PSD for the purpose of debt ceiling, in line with the provisions of the Public Debt Management Act, the PSD of Rs 237.7 billion was adjusted by a sum of Rs 28.4 billion to Rs 209.3 billion. The figure of Rs 28.4 billion comprised 32 public enterprises’ debts discounted by Rs 13 billion and including Government Securities issued to mop up excess liquidity, Cash and Cash Equivalents, Special Drawing Rights, totalling Rs 15.4 billion. The impact of the adjustment would be a decrease of PSD as a percentage of GDP by7.3 per cent, that is from 61.5 to 54.2 per cent.Short and long term strategies need to be planned ahead to ensure that the targeted ceiling of 50 per cent of GDP by the end of December 2018 would be achieved as per the amended Public Debt Management Act.The Ministry of Finance and Economic Development (MOFED) stated that as part of the Budget Estimates 2015, appropriate measures have already been envisaged to ensure that PSD target of 50 per cent of GDP is achieved by the end of December 2018.2.4.4 Management of Loans As previously reported, commitment fees were being paid when funds were withdrawn after the scheduled date specified in the loan agreements. As of 31 December 2014, commitment fees paid on undrawn balances due to delays in implementation of six projects totalled some Rs 16.5 million. The cumulative amount of commitment fees on these loans since signature of loan was Rs 92.3 million. A breakdown of commitment fees paid on these loans is shown in Table 2-12.Table 2-12 Commitment FeesFunding Agency – Loan Description (Amount)– Period of WithdrawalDisbursement up to 31.12.14Commitment Fees PaidUp to 31.12.12During 2013During2014Up to 31.12.14Rs mRs mRs mRs mExim Bank of China – PW Sewerage Lot 2 (480 m CNY) - 25 February 2009 439,484,25636.103.500.4740.07Japan International Coop Agency – Grand Bay Sewerage (7,012 m JPY) - 05 November 201042,500,0004.302.192.028.51Exim Bank of India- Offshore Patrol Vessel (48.5 m US$)- 30 March 201147,475,31013.203.842.2919.33Exim Bank of China-Bagatelle Dam (580 m CNY)- 30 April 2012428,999,682-12.648.4121.05African Development Bank -Public Sector Efficiency Programme-(420m US$) & (186 m €) - 30 May 2013324,000,000&146,000,000--0.020.02European Investment Bank-PW Sewerage Project (35 m €) -01 December 201327,502,234--3.343.34Total53.6022.1716.5592.32Disbursements were not effected as scheduled due to delay in implementation of the six projects. The late disbursement of the first four loans was attributed to the same reasons as stated in the Audit Report for the year ended 31 December 2013. As regards the following two new loans:Public Sector Efficiency Programme – The drawdown of the remaining tranches of the loan was delayed due to the situation of excess liquidity in the banking system. Accordingly the undrawn balance of the loan was cancelled.PW Sewerage Project – According to explanation provided by Wastewater Management Authority, the implementation of the sewerage project was delayed due to the increase in the length of the sewer and in the trench depths.MOFED informed that steps are being taken to reduce payment of commitment fees. However, based on the nature and complexity of projects, it might be challenging to achieve a 100 per cent implementation of projects on a timely basis and completely eliminate payment of commitment fees.2.4.5 Servicing of Public Debt(i) The servicing of Public Debt comprised capital repayments, interest payments on Domestic and External Debts and management service charges. Total Debts servicing during the past four financial years are shown in Table 2-13.Table 2-13 Servicing of Debts for Financial Years 2011-2014ParticularsYear 2011Year 2012Year 2013Year 2014Rs millionRs millionRs millionRs million*InterestsExternal Debt436.5502.1540.6643.3Domestic Debt9,192.79,627.29,088.99,474.3Management Service Charges14.935.125.616.1Sub Total9,644.110,164.49,655.110,133.7Capital Repayments External Debt768.2888.11,089.62,831.2**Capital Repayments Domestic Debt64,308.865,257.455,336.460,466.7Total74,721.176,309.966,081.173,431.6* Interest is computed on an accrual basis**including redemption of Treasury Bills and Treasury Notes.Interest payments on Public Debt have slightly increased from Rs?9.65 billion in 2013 to Rs 10.13 billion in 2014. Servicing of Public Debt has increased from Rs 66.08 billion in 2013 to Rs?73.43 billion in 2014. (ii) The servicing of Public Debt as a percentage of total Government expenditure for the past four financial years 2011 to 2014 is shown in Table 2-14.Table 2-14 Servicing of Public Debt as a Percentage of Total Government ExpenditureFiscal Year*Servicing of Public DebtRs millionTotal *ExpenditureRs millionServicing of Public Debt as a % of Total Expenditure201174,721.1148,330.250.4201276,309.9148,290.251.5201366,081.1153,874.142.9201473,431.6157,203.8646.7*including redemption of Treasury Bills and Treasury Notes.It is the Treasury policy not to include the issue and redemption of Treasury Bills and Treasury Notes in the Statement of Revenue and Expenditure of the Consolidated Fund, but the net outstanding balances were disclosed in the Statement of Assets and Liabilities. New issues of Treasury Bills and Treasury Notes for 2014 amounted to Rs 33 billion and Rs 19.4 billion respectively whilst redemption of these instruments were Rs 36.6 billion and Rs 14.7 billion respectively.In Table 2-14 above, the servicing of public debt and the total expenditure has been adjusted to include the redemption of Treasury Bills and Treasury Notes in order to give a better picture of the total cost for servicing public debt. As also stated, some 46.7 per cent of the total Government expenditure for financial year ending 31 December 2014 was on servicing of public debt. 2.5 Statement of Outstanding LoansGovernment advanced loans from revenue to Statutory Bodies, Private Individuals, State Owned Entities and Other Bodies mainly for capital projects. The Accountant General’s Department prepared a Statement of Outstanding Loans Financed from Revenue regarding such loans and as of 31 December 2014, total loans outstanding due to Government by all these Bodies amounted to Rs?13,424,304,050. Details are shown in Table 2-15.Table 2-15 Outstanding Loans due to Government as of 31 December 2014Name of BorrowersOriginal LoanOutstanding LoanRsRsStatutory BodiesCentral Electricity Board3,498,269,0172,668,270,692Central Water Authority2,367,193,6861,911,393,798Mauritius Cane Industry Authority (ex-Sugar Planters Mechanical Pool Corporation)20,408,21421,191,793Mauritius Cane Industry Authority (ex-Mauritius Sugar Industry Research Institute)2,631,395761,659Mauritius Meat Authority5,717,9435,669,085Irrigation Authority278,370,422286,923,434Agricultural Marketing Board40,210,83023,523,656National Transport Corporation196,022,528162,071,449Mauritius Institute of training and Development (ex-Industrial and Vocational Training Board)88,534,22589,347,961Rose Belle Sugar Estate92,977,64692,323,794Mauritius Broadcasting Corporation381,631,437453,944,219Wastewater Management Authority1,228,692,6161,623,481,341Subtotal8,200,659,9597,338,902,881Other BodiesBuild Mauritius Fund4,300,000,0004,300,000,000Mauritius Shipping Corporation107,200,000107,200,000Pamplemousses/Riviere du Rempart District Council42,000,00036,750,000Airports of Mauritius Ltd513,372,400578,368,170Mauritius Post and Co-operative Bank Ltd8,000,0008,000,000Rodrigues Regional Assembly14,847,00014,847,000Development Bank of Mauritius Ltd 500,815,876323,847,864Mauritius Housing Company Ltd 62,644,31516,441,242Bus Companies 25,555,6144,460,006Mauritius Cooperative Central Bank (MCCB) Ltd (in liquidation) 81,880,00081,308,000National Housing Development Co Ltd 338,870,507133,920,217Business Parks of Mauritius Ltd 481,506,283152,782,433BPML Freeport Services Ltd145,446,340105,783,181Knowledge Parks Ltd486,000,000220,424,778Subtotal7,108,138,3356,084,132,891Private IndividualsRepatriation Expenses 2,827,0701,100,177Small Scale Industries 546,277168,101Sub Total3,373,3471,268,278Total15,312,171,64113,424,304,050Central Electricity Board and Central Water Authority owed loan amounts of Rs 2.66 billion and Rs?1.91 billion respectively, being capital instalments as of 31 December 2014. These two outstanding loan balances represented some 34 per cent of the total of Rs 13.4 billion.2.5.1 Loan Instalments in ArrearsNine Statutory Bodies and eight Other Bodies have not been paying the loan instalments as well as the accrued interests. They owed a total of Rs 2,197,523,867, comprising capital and interest of Rs?1,228,135,636 and Rs 969,388,231 respectively as of 31 December 2014. Details are shown in Table 2-16.Table 2-16 Arrears of Capital and Interests due as of 31 December 2014CapitalRsInterestRsPeriod dueRemarksStatutory BodiesCentral Electricity Board1,392,562783,5342014Insufficient repaymentCentral Water Authority (Note 1)489,871,247212,644,8681999-2014Insufficient repaymentMauritius Institute of Training and Development (ex-IVTB) (Note 2)89,306,6852005-2014Repayment of Rs 45,100,000 in Dec.2014Irrigation Authority (Note 3)246,369,308165,174,1221983-2014No repayment since August 1996National Transport Corporation (Note 4)154,071,448264,768,7941988-2014Insufficient repaymentMauritius Meat Authority5,669,085-1986-1990No repayment since 1980Mauritius Broadcasting Corporation48,346,12616,602,9152010-2014Outstanding since 2011Rose Belle Sugar Estate (Note 5)70,227,82787,540,0351982-2013Request for write offWastewater Management Authority 54,150,5192014Outstanding since 2014Other BodiesBPML Freeport Services Ltd 5,329,15134,449,1831999-2014Insufficient repaymentNational Housing Development Corporation4,360,1933,966,6142014Insufficient repaymentSmall Scale Industries (Note 6)168,101972,1531985-2014No repayment since 1992Business Parks of Mauritius Ltd3,200,02249,499,8262003-2014Insufficient repaymentMCCB Ltd (in liquidation) (Note 7)81,308,00061,817,7961997-2014In liquidationBus Companies (Note 8)4,460,006-1979No repayment since 1992Mauritius Shipping Corporation 22,200,00014,585,3572011-2013Outstanding since 2011Rodrigues Regional Assembly1,855,8752,432,5152011-2014Outstanding since 2011Total1,228,135,636969,388,2312,197,523,867As of 31 December 2014, several Bodies were still unable to repay the arrears of loan instalments and interests.Note 1 Central Water Authority (CWA)CWA contracted several other loans from Government during 2014 totalling Rs 594,828,158. Moreover, Government set off Rs 200 million against the arrears amount of capital Rs 145.5 million and interest Rs 54.5 million on a First-in First-out basis. Since 4 February 2013, CWA had ceased to collect the Bottled Water Levy and Government compensated the Authority for the loss of revenue to the tune of Rs 200 million. The amount was provided for, under Pragramme 443 – Item 25110009, ‘Subsidy to CWA’ in the Programmed Based Budget Estimates since year 2013.Note 2 Mauritius Institute of Training and Development (MITD) ex –IVTBThe ex IVTB contracted two loans of FF 14 million and FF 21 million from the Agence Fran?aise de Development in November 1989 and September 1993 respectively. In December 2014, MITD paid Rs 45.1 million, representing capital and arrears elements of Rs 1,925,692 and Rs 43,174,308 respectively.Note 3 Irrigation Authority (IA)IA contracted 15 loans totalling Rs 278,370,422 during the years 1984 to 2012 and could not repay the loan instalments.Note 4: National Transport Corporation (NTC)Of the 12 loans contracted during the years 1988 to 2010 and totalling Rs 196,022,528, the Corporation was effecting regular repayments in respect of only one loan contracted in year 2009.Note 5: Loans to Rose Belle Sugar Estate Rose Belle Sugar Estate made a request to MOFED to write off both the African Development Bank Loans and Other Loans borrowed from Government, as it was not in a position to repay them.Note 6: Loans to Small Scale IndustriesLoans and interests in respect of Small Scale Industries totaling Rs 1.1 million have remained unpaid since year 1993.The Accountant General stated that action has already been initiated to determine whether the amounts are irrecoverable.Note 7: MCCB Ltd (in liquidation)MCCB ltd is in liquidation and the liquidator has not yet repaid the loan.Note 8: Bus CompaniesBus Companies still owed a balance of Rs 4,460,006 on a loan amount of Rs 25 million disbursed during 1978 to effect payments of end of year bonus and extra remuneration to their employees. The companies have not effected any repayment since 1995. The balancing amount could be considered as irrecoverable.The Accountant General stated that action has already been initiated to determine whether the amounts are irrecoverable.2.5.2 New Loans Disbursed during Financial Year 2014During the financial year 2014 Government advanced new loans to the five bodies stated in Table 2-17.Table 2-17 New LoansBodiesRsCentral Water Authority594,828,158Waste Water Management Authority702,488,725SPV/Knowledge Park Ltd220,424,778Mauritius Broadcasting Corporation18,000,000Private Individuals123,022Total1,535,864,683Loan to Central Water Authority (CWA) – Rs 594,828,158An amount of Rs 594,828,158 was advanced to CWA during the current financial year to carry out five projects namely, Pailles Water Treatment Plant, Bagatelle Treatment Plant and Downstream Works, Reduction of Non - Revenue Water, Transfer of Water from Midlands Dam to Piton du Milieu and Pipe Replacement Project.The loan agreements were signed between the Government of Mauritius and Central Water Authority in December 2014 to allow the Authority to execute the projects under the Programme Based Budget 2014.Loan to Wastewater Management Authority (WMA) - Rs 702,488,725A total of Rs 702,488,725 was disbursed during 2014 to allow WMA to execute projects approved under the Programme Based Budget Estimates 2014. Loan to Knowledge Parks Ltd – Rs 220,424,778The loan agreement was signed between Government of Mauritius and Knowledge Parks Ltd, a State–owned company on 7 March 2014. Government agreed to grant a loan of Rs 486 million to finance the construction of University Campuses. The loan period is 15 years with interest at eight per cent per annum.Loan to Mauritius Broadcasting Corporation (MBC) – Rs 18 millionGovernment made an advance to MBC in December 2014 to meet expenses in connection with the National Assembly Elections 2014 (Advance No 64 of 2014). The advance was converted into a loan. No loan agreement setting out the terms and conditions was produced.The Accountant General stated that the advance was converted into a loan in December 2014. A draft loan agreement has already been prepared and will be signed in the context of the restructuring of the MBC.2.6 Statement of Arrears of RevenueArrears of revenue totalled Rs 8,471,499,677 as of 31 December 2014. The Accountant General compiles the figures from returns submitted by all Ministries and Government Departments. The Financial Regulations require that officers responsible for collection of revenue should submit to the Accountant General a Statement of Arrears of Revenue as at 30 June and 31 December of the financial year.Arrears of revenue for the past five financial years are given in the Table 2-18.Table 2-18 Arrears of RevenueFinancial YearArrears of RevenueRs20106,505,963,03320116,558,064,75720126,927,931,06120138,386,240,50520148,471,499,677Annual increases have been noted in the arrears of revenue figure. There was a significant increase of Rs 1,965,536,644 in a five-year period. 57.6 per cent of the total arrears figure of Rs 8,471,499,677 related to the Mauritius Revenue Authority, that is Rs 4,879,562,183. Government wrote off a total of Rs 130,610,949 being long outstanding and irrecoverable debts, as per Table 2-19.Table 2-19 Arrears of Revenue Written Off in 2014Ministries/DepartmentsRsMauritius Revenue Authority10,774,501The Treasury333,362Registrar- General’s Department9,958,345 Companies Division52,727,907 Ministry of Health & Quality of Life 1,250,000 Judiciary55,566,834 Total130,610,9492.6.1 Age List of DebtorsTable 2-20 shows an aged list of debtors amounting to Rs 8,471,499,677 as of 31 December 2014. The aged list has been compiled from the Returns submitted by Ministries and Departments to the Accountant-General.A sum of Rs 4,611,619,755 was outstanding for period prior to year 2013. This represented 54 per cent of the total arrears figure. Table 2-20 Aged List of Debtors as of 31 December 2014Ministries/ DepartmentsPrior to 201320132014?Total Debtors as of 31.12.14UnallocatedRsRsRsRsRsMauritius Revenue AuthorityIncome Tax (Including Large Taxpayer)1,103,176,820396,103,754486,439,884-1,985,720,458Value Added Tax1,222,839,616445,698,724584,469,216-2,253,007,556Customs and Excise5,598,2073,002,84257,902,986-66,504,035Betting and Gaming80,608,705104,686,84848,868,036-234,163,589Sales Tax2,007,014-2,007,014Environment Protection Fee6,840,26111,294,2168,571,059-26,705,536Pay As You Earn45,505,14540,705,45241,895,003-128,105,600Tax Deduction Scheme47,914,55527,080,13647,999,116-122,993,807Others7,682,12217,812,52234,859,944-60,354,588Sub-total2,522,172,4451,046,384,4941,311,005,244-4,879,562,183Other Ministries and DepartmentsCivil Aviation27,034,392997,2534,280,931-32,312,576Industry (Commerce Division)85,94054,036-139,976Public Infrastructure (Land Transport Division.)21,230-21,230Fire Services211,709-211,709Companies Division139,121,58636,683,46852,456,393-228,261,447Education and Human Resources134,799,2502,964,207--137,763,457Tourism and Leisure710,128360,962107,309-1,178,399Public Infrastructure (Public Infrastructure Division)976,37912,000166,033-1,154,412Renewable Energy and Public Utilities6,654,391-6,654,391Health and Quality of Life5,739,672377,8401,120,787-7,238,299Police Force707,645866,259-1,573,904continuedTable 2-20 Aged List of Debtors as of 31 December 2014(continued)Ministries/ DepartmentsPrior to 201320132014?UnallocatedTotal Debtors as of 31.12.14RsRsRsRsRsLocal Govt. and Outer Islands235,62024,000-259,620Ministry of Public Infrastructure (Shipping Division)332,478197,367299,316-829,161National Transport Authority30,734,0003,739,0003,159,000-37,632,000National Audit Office1,530,000-1,530,000Attorney General's Office292,60587,710178,275-558,590Ministry of Labour,IR Empl. (Employment Division)257,834-257,834Ministry of Arts and Culture895,000-895,000PMO (Data Protection Office) 3,064,8503,277,4004,984,850-11,327,100Industrial Court108,35067,20077,000-252,550Intermediate Criminal Court 3,562,8046,030,44125,559,140-35,152,385Judicial Courts10,596,7842,280,80010,772,925-23,650,509Commercial Courts62,5801,750-64,330Judicial Others780,86054,60070,000-905,460The Treasury 1,564,208,848223,588,719418,383,509-2,206,181,076Registrar- General120,992,886319,164,402440,157,288Housing and Lands159,405,20987,274,536157,155,449-403,835,194Social Security, NS and RI435,0273,253,7463,688,773Agro Industry and Food Security2,483,9805,766,8448,250,824Sub-total2,089,447,310369,525,253804,779,939328,184,9923,591,937,494Grand Total4,611,619,7551,415,909,7472,115,785,183328,184,9928,471,499,6772.6.2 The Treasury – Rs 2,206,181,077 Arrears in the books of The Treasury as of 31 December 2014 comprised mainly two items, as shown in Table 2-21.Table 2-21 Treasury Arrears of Revenue as of 31 December 2014RsLoan 2,197,706,569Accident and Claims8,474,508Total2,206,181,077The arrears of loan consisted of Rs 1,228,287,661 as capital repayment due and Rs 969,418,908 for interest due by nine Statutory Bodies and eight Private Bodies. Of the outstanding balance for Accidents and Claims of Rs 8,474,508, there were claims of Rs 3,660,952 relating to accidents that occurred during the years 1979 to 2004 and considered time barred and irrecoverable. A sum of Rs 333,362 was written off during the financial year for arrears due for accidents.The Accountant General informed that once an amount is determined to be irrecoverable, in the light of advice from the Attorney General’s Office or otherwise, action will be taken to write off the amount. ................
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