Press Articles from Defi Quotidien e-newspaper of 8.4.

2020

1. A petition launched to "save Mauritian entrepreneurs": Seven measures has

been proposed
"Save the Mauritian entrepreneurs!" It is the title of an online petition launched by Jean-
François Leckning, director of People magazine and who presents himself as a "small
entrepreneur", addressed to the Minister of Finance, Renganaden Padayachy.
Launched on Sunday 5 April, this petition had already collected 3,243 signatures out of 5,000
referred to this Tuesday evening.
Jean-François Leckning explains that he has become "the spokesperson for several
entrepreneurs" who believe that the seven measures they propose "are vital to our eventual
survival".
“Our survival depends on it. We are hundreds and hundreds of small entrepreneurs and self-
employed people who are absolutely not found in the aid plans proposed by the state at this
stage. We have significant expenses that we cannot honour due to lack of income. We, small
entrepreneurs, have contributed for years to the advancement of the country and failing to
help us today will, in the long run, cause enormous damage to the Mauritian economy, "he
said.
Jean-François Leckning writes at the start of his petition that "with the unprecedented
economic crisis which we are facing, we, duly registered small entrepreneurs of Mauritius,
ask the Minister of Finance, Mr. Renganaden Padayachy, to kindly consider the following
measures urgently:
1) A six-month moratorium on the repayment of ALL BORROWINGS, personal and
corporate, capital and interest, from banks and leasing companies.
2) A six-month moratorium on interest related to our authorized overdrafts, personal
accounts and corporate accounts.
3) Freezing commercial rents for a period of six months and a state subsidy to the
Landlords so that they can maintain their buildings.
4) Freezing of telephone, water and electricity, personal and business bills.
5) Freezing the VAT Return for the first quarter of 2020.
6) Freezing our contributions to the MFN for six months.
7) The possibility of borrowing between Rs 300,000 and 1 million over five years and
not two years, and at an interest rate not exceeding 2.5% (and not 0% over nine
months and 6.5% over fifteen months as currently proposed).
Those interested in signing the petition can do so by clicking on the following link:
https://bit.ly/2yzJuBJ
Jean-François Leckning wants a meeting with the authorities to be able to discuss the
situation. Asked by www.defimedia.info about the petition he launched, he explains that we
must be able to differentiate between Small and Medium Enterprises (SMEs) and "Very
Small Enterprises" (VSE), "which are in first line when we talk about economic disaster ”.
"There are companies that have only two or three employees and the government support
packages are not suited to their needs," he said.
Jean-François Leckning says that some companies are forced to close for lack of resources.
"Some entrepreneurs have taken out personal loans to finance their business. What will
happen to these people? "He wonders.
2. The taxi drivers are worried: The government reassured them
Various person are facing technical unemployment due to Covid-19 and taxi drivers are one
of them. A source from the Ministry of Finance highlights that taxi drivers are part of the
informal sector assistance plan. Like the others they will also receive the amount of Rs 5100.
They must register with the Mauritius Revenue Authority (MRA), which will in turn carry
out an evaluation.
The president of the Taxi Proprietors Union, Raffick Bahadoor claims to have received
several calls to this effect, in particular, from taxi drivers operating in hotels. He advises taxi
drivers, especially those who have no other income and who do not receive an old age
pension, to register themselves with the MRA.

3. The figure of the day

113920, is the total number of applications received by the Mauritius Revenue Authority
under the Self-Employed Assistance Scheme. As at date, the MRA has disbursed around Rs
412 million in favour of 80,805 beneficiaries.

4. What are the consequences of Covid-19 on the real estate sector?

In this period of sanitary crisis and confinement, the real estate sector is paralyzed. The
professionals of the sector explains how the operators, cross this gloom and the future of the
real estate sector ...
Laval Savrimootoo, President of the Association of real estate agents deplores that for the
past few years, excluding Smart Cities projects, the real estate sector is already experiencing
a slowdown. With the Covid-19, the situation got worse. He says that many operators are
struggling to cover the monthly costs. For example rents cost Rs 15,000 to Rs 20,000.
According to Laval Savrimootoo, work from home is impossible in this sector. To be able to
effect a sale of land, one has to be on field and human contact is necessary. Many sales agent
are not working right now and are not receiving any commission. Real estate agents and
secretaries risk being fired.
The sales executive, Junaid Nuzeebun argues that gloom is also felt at Davyland Properties.
There were freezes in sales and purchases of assets. All activities have been stopped.
However, the company is focusing on online advertising for the moment and as the lockdown
will be removed, sales will be boosted. He believes that the Work Assistance Scheme
implemented by the government is a relief.
 5. Rents: Commercial tenants claim state aid
Between Rs 5000 and Rs 20000, this is the range of rents that the renters of shops, boutiques
and restaurants pay per month. In this period of confinement, government support is sought.
Raj Appadu, president of the Common Front of Merchants, indicated that 75% of the
managers of shops, boutiques, restaurants and other businesses in Mauritius are tenants. Since
20 March, apart from a few shops and boutiques, all businesses have closed their doors to the
government's announcement on lockdown. He explains that for the well-being of the people,
we all have to respect this decision. However, since these businesses no longer operate, they
no longer have any income. As a result, paying rents becomes extremely difficult. He said
that a letter was addressed to the Ministry of Finance about this. He highlighted that these
renters of shops, boutiques and restaurant are already contributing to the Mauritius Revenue
Authority (MRA) and appeals to the government to use this fund for the payment of rents,
during the period of confinement.
In addition the restaurants pay a Trade Fee of Rs 7500 per year. If we add up all the payments
that businesses make to the MRA, each year, that makes a huge number. In this period of
crisis, we count on the government’s support. He said that rents in the Port Louis, Rose Hill
and Curepipe area are much higher.
75% of businesses operate in a rental location. Rents according to business activities:
 Tobacco and small shops: Rs 5000 and above
 Stores: Rs 25,000 to Rs 150,000
 Restaurants: Rs 25,000 to Rs 200,000

6. Convicted for tax evasion: A Company director is fined the sum of Rs 696,000
Aumary Heeraman, director of Sealicious Ltd, currently under judicial administration, has
received a total fine of Rs 696,027.50, before the intermediate court. This after being found
guilty of tax evasion. The latter was accused of having undervalued imported seafood for a
net amount of Rs 278,440.
This verdict comes after more than 11 years after the facts. Aumary Heerama, a resident of
Vieux Grand Port, was prosecuted, in the middle of the process, by the Mauritius Revenue
Authority (MRA) on six charges of Evading payment of taxes which are payable. He had
pleaded not guilty and was defended by Me Noor-E-Shad Shayfiuddin Hussenee. The
prosecution was represented by Me Prashant Bissoon, State Counsel. Aumary Heeraman was
accused of having undervalued imported seafood, including frozen octopus and shrimp, from
26 January, 2008 to February 2009, for a net amount of Rs 278,440.
The merchant was convicted of the charges in May 2019 by the magistrate Pranay Sewpal. It
is until 18 March, 2020 that the sentence could be pronounced. The magistrate also stated that
when the verdict was announced, the case was referred several times at the request of the
lawyer for the accused. The lawyer had justified his request, stating that the appropriate
remission of the sentence to be imposed on his client should be considered. The magistrate
thus imposed a fine of the total sum of Rs 696027.50 on the company director.
It was after a raid by the MRA on the premises of the company Sealicious Ltd in Vieux
Grand Port, on the basis of suspicions of undervaluation, that Aumary Heeraman had been
arrested. The tax authorities had collected documents relating to imports of seafood and bank
statements, among others.
Aumary Heeraman, meanwhile, refused to give a statement to the MRA, he was content only
to verbally deny the accusations made against him. The magistrate, therefore, ruled that,
taking into account the invoices and documents seized, it was obvious that the accused had
given false information to the broker and tried to escape the payment of taxes due. The
magistrate concluded that this shows the criminal intention on his part.
7. Export: Mexa anticipates three to four very difficult months
Lilowtee Rajmun, director of the Mauritius Export Association (Mexa), highlights that the
export sector is very affected by the current situation and the" lockdown "in various
countries. In fact, we are currently witnessing a total cessation of production, "she said during
a meeting with Minister Soomilduth Bholah, Minister of Industrial Development, SMEs and
Cooperatives. The meeting was conducted in the presence of representatives of various
organizations, including the Chamber of Commerce and Industry, the Association of
Mauritian Manufacturers, Business Mauritius, SME Mauritius, among others.
It is important, insists Lilowtee Rajmun, to "keep businesses" alive during this "critical period
that will last beyond confinement". The Mexa anticipates, moreover, three to four very
difficult months. “We had discussions on how to preserve our industrial base during this
critical period. At least after this crisis, we can resume normal operations without losing our
assets, either in terms of human resources or export capacity, "she said.