Petroleum products- Contract with Betamax to be renegotiated
According to the Prime Minister if negotiations between the two parties are fruitful, the freight cost will be reduced by half. (Image: business.mega).
The Prime Minister of Mauritius, Sir Anerood Jugnauth has announced during a press conference on January 09, 2015 at the Treasury Building in Port Louis, that the contract of Betamax Shipping Ltd with the State Trading Corporation (STC) for the transportation of petroleum products from India to Mauritius will be renegotiated.
The negotiations which are expected to start this Wednesday January 14, 2015 will be look upon by an inter-ministerial committee chaired by the Minister of Financial Services, Good Governance and Institutional Reforms, Sudarshan Bhadain.
After taking note of the conclusions of the report submitted by the committee, Sir Anerood Jugnauth pointed out, that the Government has decided to enquire further about the excessive freight price being paid.
Thus, according to the Prime Minister if negotiations between the two parties are fruitful, the freight cost will be reduced by half.
“This action of Government is in line with the policy of inculcating a culture of good governance and transparency so as to avoid wastage of public funds for the interest of the population,” the Prime Minister stressed.
In this line, the cabinet has agreed on January 09, 2015 to the set up a Public Sector Efficiency Bureau in the Ministry of Financial Services, Good Governance and Institutional Reforms headed by Rajun Jugurnath, former Director of Audit.
The functions of the Bureau will, amongst others, be to: (a) review administrative and financial systems and procedures in Ministries, Departments, statutory bodies, state-owned companies and other Government agencies with a view to identifying inefficiencies and weaknesses and make specific recommendations for improving accounting, financial and operational policies, control, systems and processes; and (b) investigate into suspected cases of wastage, improper use and mismanagement of public funds.
It can be recalled that the contract with Betamax which runs over 15 years was signed in November 2009 and was worth Rs 8 billion.