2 - ANNUAL FINANCIAL STATEMENTS
2.1 Statement of Assets and Liabilities
The 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 Liabilities
Assets 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 Liabilities
Year ended 31 December
2010
2011
2012
2013
Rs million Rs million Rs million Rs million
2014
Rs million
Assets
Cash and Bank Balances
Advances
3,142.8
1,430.9
4,014.3
1,372.6
3,850.1
1,346.5
9,645.8
2,424.7
17,396.7
2,523.1
Investments
7,424.6
20,030.4
22,120.2
19,216.8
16,337.3
3,762.2
3,725.1
IMF-SDR Deposit
Total Assets
11,998.3
25,417.3
27,316.8
35,049.5
39,982.2
Liabilities
Accounts Payable
4,063.4
4,072.3
4,165.1
4,406.9
4,603.1
Government Debt
76,238.5
74,217.9
68,613.0
68,683.1
75,519.1
985.1
1,181.3
1,403.9
1,408.2
1,369.0
4,492.9
4,448.6
74,182.0
78,991.1
85,939.8
(69,288.7) (54,054.2) (46,865.2)
(43,941.6)
(45,957.6)
9,248.3
10,963.8
7,783.1
(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)
Deposits
IMF-SDR Allocations
Total Liabilities
Net Liabilities
81,287.0
79,471.5
Represented by:
Special Funds
Accumulated deficit in the
Consolidated Fund
6,256.1
9,890.4
11
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 Loans.
Government 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 Fund
The 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.
12
ANNUAL FINANCIAL STATEMENTS
Table 2-2 Revenue and Expenditure for Financial Years 2010-2014
Financial
Year
Revenue
Rs
Expenditure
Rs
Surplus/(Deficit)
Rs
2010
81,313,164,042
79,894,063,594
1,419,100,448
2011
87,653,059,839
87,816,218,502
(163,158,663)
2012
95,680,475,892
89,101,477,784
6,578,998,108
2013
105,033,770,981
102,924,073,475
2,109,697,506
2014
107,636,866,249
106,693,317,662
943,548,587
The accumulated deficit of the Consolidated Fund amounted to Rs 53.74 billion as of
31 December 2014.
2.2 Statement of Investments
Details 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 2014
Cost
2014
Rs
144,853,991
2013
Rs
144,853,991
75,789,771
75,789,771
Unquoted Shares
8,531,450,955
8,535,404,261
Equity Participation
3,971,685,060
3,971,685,060
Sub Total
12,723,779,777
12,727,733,083
Other Investments
Grand Total
3,613,537,525
16,337,317,302
6,489,039,039
19,216,772,122
Details
Quoted Shares
Units
Other 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
13
ANNUAL FINANCIAL STATEMENTS
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 Participation
A 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 Investments
The 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 2010-2014
Financial Year
2010
Budgeted
Rs
2,592,800,000
Actual
Rs
1,787,259,799
2011
338,000,000
704,044,748
2012
2,477,000,000
1,039,755,819
2013
2,633,000,000
1,478,778,376
2014
1,295,000,000
942,836,943
For 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.
14
ANNUAL FINANCIAL STATEMENTS
Table 2-5 Dividends received during Financial Years 2013 and 2014
Details
Investment at
Cost
31.12.2014
Rs
Dividend
Received
2014
Rs
Dividend
Received
2013
Rs
Quoted Shares
SBM Bank (Mauritius) Ltd
41,058,573
85,229,906
59,810,460
Air Mauritius Ltd
99,178,348
4,282,329
-
4,604,412
2,206,587
882,635
840
360
338
2
7
6
240
48
-
NMF General Fund
4,002,000
623,926
604,489
NMF Property Trust
15,000,000
455,028
597,255
63,625,174
670,609,334
750,777,053
1,607,774,970
119,857,310
544,111,073
Air Mauritius Holding Ltd
87,354,608
11,433,138
-
State Informatics Ltd
32,800,000
4,750,522
2,972,012
Mauritius Housing Company Ltd
59,161,634
33,190,814
36,499,815
Sugar Investment Trust
19,999,980
2,546,443
4,873,911
Port Louis Fund
55,979,090
5,038,118
4,478,327
3,783,716
-
507,498
16
28
32
AFREXIM Bank
10,776,420
-
3,081,122
African Reinsurance Corporation
28,970,892
2,505,121
-
48
154
-
28,858
-
9,235,200
-
896
89
3,439,811
106,874
-
2,000,000,000
-
60,347,061
942,836,943
1,478,778,376
New National Investment Trust
Alteo Ltd
The MDIT Trust Co Ltd
New Mauritius Hotels Ltd
Units
Unquoted Shares
Mauritius Telecom Ltd
Airports of Mauritius Company Ltd
PTA Reinsurance Company (ZEP-RE)
FIDEL
United Investments
Overseas Telecommunications
Services
Alma Investments Co ltd
Shelter Afrique
Equity Participation
Bank of Mauritius
Total
15
ANNUAL FINANCIAL STATEMENTS
Department’s Reply
The 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 2014
Investment 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 2014
Year of
Investments
1983-2013
Cost Price
Rs
200,600,000
AFREXIM Bank
1993
10,776,420
COVIFRA Ltee
Prior 2001
2,052,356
Overseas Telecommunications Services
Prior 2001
28,858
Development Bank of Mauritius Ltd
Prior 2001 and
2005 - 2009
Prior 2001 and 2011
Cargo Handling Corporation Ltd
Mauritius Shipping Corporation Ltd
Editions De L’Ocean Indien Ltee
PTA Reinsurance Company (ZEP-RE)
State Investment Corporation Ltd
216,250,000
135,493,000
2000 and 2001
1,140,000
Prior 2001
3,783,716
2001 and 2012
85,000,000
United Docks Ltd
Prior 2001
9,600
Stafford Mayer Company South Africa Ltd
Prior 2001
16
Bank of Mauritius
2005 and 2011
National Real Estate Ltd
Les Pailles International Conference Centre
2,000,000,000
30.06.09
500,000,000
2006 - 2009
652,688,656
Film Confluences Co. Ltd
2013
1,000,000
Knowledge Parks Ltd
2013
25,000
New DBM Ltd
2013
200,000,000
Total
4,008,847,622
16
ANNUAL FINANCIAL STATEMENTS
2.2.4 Investments not Yielding any Return Since Acquisition
Investments (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 Acquisition
Year of
Investment
Quoted Shares
Blue Life Ltd
Unquoted Shares
African Development Bank
Airports of Rodrigues
Business Parks of Mauritius Ltd
Discover Mauritius Ltd
Eastern and Southern African Trade & Development Bank Ltd
Enterprise Mauritius
Events Mauritius Ltd
Mauritius Educational Development Company Ltd
Multi Carrier Mauritius Ltd
Mauritius Post and Cooperative Bank Ltd
National Housing Development Company Ltd
SME Partnership Fund
State Land Development Company Ltd
State Property Development Company Ltd
The Mauritius Post Ltd
Tourist Villages Company Ltd
Equity Participation
Mauritius Cooperative Livestock Marketing Federation
Mauritius Cane Industry Authority (ex-Mauritius Sugar
Authority and ex-Mauritius Sugar Terminal Corporation)
Rodrigues Educational Development
Rose Belle Sugar Estate
Central Electricity Board
Central Water Authority
National Transport Corporation
State Trading Corporation
Civil Service College
Units
NIT Local Equity Fund
NIT Global Opportunities Fund
Total
2013
Cost Price
Rs
1,976
1992-1993
2000-2008
2001-2009
2006-2007
1990-1991
2004-2005
2006-2007
2000-2001
2001-2004
2001-2005
2007-2008
2005-2006
2001-2007
2001-2004
2001-2005
2007-2009
553,289,772
538,310,200
1,105,552,722
500,000
157,868,426
79,782,747
1,800,000
16,000,000
134,000,000
137,166,400
200,000,000
50,000,000
385,024,900
663,000,000
371,111,200
170,000,000
1992-1993
450,000
1984-1985
2001-2002
1987-1996
1992-1993
1993-2012
Prior 01.07.01
Prior 01.07.01
2012
173,803,732
80,000
98,844,218
670,856,197
962,250,913
50,000,000
400,000
15,000,000
03.03.08
03.03.08
38,370,116
18,417,655
6,591,881,174
17
ANNUAL FINANCIAL STATEMENTS
Department’s Reply
The 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 Funds
Section 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 prepare
 annual statements of the receipts and payments for a financial year; and
 a balance sheet made up to the end of that financial year showing the assets and liabilities
of the Fund.
18
ANNUAL FINANCIAL STATEMENTS
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 Debt
The 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 Category
31 December 2014
Rs
31 December 2013
Rs
Domestic
165,285,650,000
149,959,430,000
External
51,429,001,609
47,092,645,001
216,714,651,609
197,052,075,001
23,851,050
23,851,050
12,998,623,337
12,766,319,659
13,022,474,387
12,790,170,709
-
291,397
7,963,338,185
10,024,731,134
7,963,338,185
10,025,022,531
237,700,464,181
219,867,268,241
Government Debt
Guaranteed by Government
Agencies Extra Budgetary Units
Public Enterprises
Not Guaranteed by Government
Agencies Extra Budgetary Units
Public Enterprises
Total
Domestic 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.
19
ANNUAL FINANCIAL STATEMENTS
2.4.1 Domestic Government Debt
Maturity Structure of Domestic Government Debt
Domestic 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 Debt
Years of
Maturity
Treasury
Bills
Treasury
Notes
MDLS
Bonds
Total
Percentage
2015
Rs m
22,652.9
Rs m
13,855.5
Rs m
1,688.1
Rs m
7,660.1
Rs m
45,856.6
28.68
2016
14,610.0
2,740.7
5,913.6
23,264.3
14.55
2017
19,445.0
31.0
7,175.0
26,651.0
16.68
2018
1,573.3
8,825.0
10,398.3
6.50
2019 and
Onwards
1,503.8
52,195.7
53,699.5
33.59
7,536.9
81,769.4
*159,869.7
100.00
Total
22,652.9
47,910.5
*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 2015.
Government of Mauritius Securities issued for mopping up of excess liquidity
In 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.
20
ANNUAL FINANCIAL STATEMENTS
2.4.2 Public Sector Debt Figures for Past Five Years
The 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 2014
Financial
Year
Public Sector Debt
Rs
Increase over the
previous year
Rs
Increase over the
previous year
%
*2010
172,814,286,623
4,260,619,435
2.52
*2011
185,187,034,366
12,372,747,743
7.15
*2012
194,486,933,430
9,299,899,064
5.02
2013
219,867,268,241
25,380,334,811
13.05
2014
237,700,464,181
17,833,195,940
8.11
* The figures for PSD for 2010 to 2012 exclude IMF SDR allocations
Over 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 Product
PSD 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 Product
PSD
Rs billion
GDP
Rs billion
31 December 2011
*189.6
323.0
PSD as
Percentage of GDP
%
58.7
31 December 2012
*199.0
343.8
57.9
31 December 2013
219.9
366.2
60.0
31 December 2014
237.7
386.3
61.5
*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.
21
ANNUAL FINANCIAL STATEMENTS
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 by
7.3 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.
22
ANNUAL FINANCIAL STATEMENTS
Table 2-12 Commitment Fees
Funding Agency – Loan
Description (Amount)
– Period of Withdrawal
Disbursement
up to 31.12.14
Commitment Fees Paid
Up to
31.12.12
During
2013
During
2014
Up to
31.12.14
Rs m
Rs m
Rs m
Rs m
Exim Bank of China –
PW Sewerage Lot 2 (480 m CNY)
- 25 February 2009
439,484,256
36.10
3.50
0.47
40.07
Japan International Coop Agency
– Grand Bay Sewerage
(7,012 m JPY)
- 05 November 2010
42,500,000
4.30
2.19
2.02
8.51
Exim Bank of IndiaOffshore Patrol Vessel
(48.5 m US$)
47,475,310
13.20
3.84
2.29
19.33
Exim Bank of ChinaBagatelle Dam
(580 m CNY)
- 30 April 2012
428,999,682
-
12.64
8.41
21.05
African Development Bank Public Sector Efficiency
Programme(420m US$) & (186 m €)
- 30 May 2013
324,000,000
&
146,000,000
-
-
0.02
0.02
European Investment BankPW Sewerage Project (35 m €)
-01 December 2013
27,502,234
-
-
3.34
3.34
53.60
22.17
16.55
92.32
- 30 March 2011
Total
Disbursements 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
23
ANNUAL FINANCIAL STATEMENTS
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 2011-2014
Particulars
Year 2011
Rs million
Year 2012
Rs million
Year 2013
Rs million
Year 2014
Rs million
*Interests
436.5
502.1
540.6
643.3
9,192.7
9,627.2
9,088.9
9,474.3
14.9
35.1
25.6
16.1
9,644.1
10,164.4
9,655.1
10,133.7
768.2
888.1
1,089.6
2,831.2
**Capital Repayments Domestic
Debt
64,308.8
65,257.4
55,336.4
60,466.7
Total
74,721.1
76,309.9
66,081.1
73,431.6
External Debt
Domestic Debt
Management Service Charges
Sub Total
Capital Repayments External Debt
* 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.
24
ANNUAL FINANCIAL STATEMENTS
Table 2-14 Servicing of Public Debt as a Percentage of Total Government Expenditure
Fiscal
Year
*Servicing of
Public Debt
Rs million
Total
*Expenditure
Rs million
Servicing of Public
Debt as a % of
Total Expenditure
2011
74,721.1
148,330.2
50.4
2012
76,309.9
148,290.2
51.5
2013
66,081.1
153,874.1
42.9
2014
73,431.6
157,203.86
46.7
*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 Loans
Government 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.
25
ANNUAL FINANCIAL STATEMENTS
Table 2-15 Outstanding Loans due to Government as of 31 December 2014
Name of Borrowers
Original Loan
Rs
Outstanding Loan
Rs
3,498,269,017
2,367,193,686
2,668,270,692
1,911,393,798
20,408,214
21,191,793
2,631,395
5,717,943
278,370,422
40,210,830
196,022,528
761,659
5,669,085
286,923,434
23,523,656
162,071,449
88,534,225
92,977,646
381,631,437
1,228,692,616
89,347,961
92,323,794
453,944,219
1,623,481,341
Subtotal
Other Bodies
Build Mauritius Fund
Mauritius Shipping Corporation
Pamplemousses/Riviere du Rempart
District Council
Airports of Mauritius Ltd
Mauritius Post and Co-operative Bank Ltd
Rodrigues Regional Assembly
Development Bank of Mauritius Ltd
Mauritius Housing Company Ltd
Bus Companies
Mauritius Cooperative Central Bank (MCCB)
Ltd (in liquidation)
National Housing Development Co Ltd
Business Parks of Mauritius Ltd
BPML Freeport Services Ltd
Knowledge Parks Ltd
8,200,659,959
7,338,902,881
4,300,000,000
107,200,000
4,300,000,000
107,200,000
42,000,000
513,372,400
8,000,000
14,847,000
500,815,876
62,644,315
25,555,614
36,750,000
578,368,170
8,000,000
14,847,000
323,847,864
16,441,242
4,460,006
81,880,000
338,870,507
481,506,283
145,446,340
486,000,000
81,308,000
133,920,217
152,782,433
105,783,181
220,424,778
Subtotal
7,108,138,335
6,084,132,891
2,827,070
546,277
3,373,347
15,312,171,641
1,100,177
168,101
1,268,278
13,424,304,050
Statutory Bodies
Central Electricity Board
Central Water Authority
Mauritius Cane Industry Authority (ex-Sugar
Planters Mechanical Pool Corporation)
Mauritius Cane Industry Authority (exMauritius Sugar Industry Research Institute)
Mauritius Meat Authority
Irrigation Authority
Agricultural Marketing Board
National Transport Corporation
Mauritius Institute of training and
Development (ex-Industrial and Vocational
Training Board)
Rose Belle Sugar Estate
Mauritius Broadcasting Corporation
Wastewater Management Authority
Private Individuals
Repatriation Expenses
Small Scale Industries
Sub Total
Total
26
ANNUAL FINANCIAL STATEMENTS
Central 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 Arrears
Nine 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.
27
ANNUAL FINANCIAL STATEMENTS
Table 2-16 Arrears of Capital and Interests due as of 31 December 2014
Capital
Rs
Interest
Rs
Period due
Remarks
2014
Insufficient repayment
Statutory Bodies
Central Electricity Board
Central Water Authority (Note 1)
Mauritius Institute of Training
and Development (ex-IVTB)
(Note 2)
1,392,562
783,534
489,871,247 212,644,868 1999-2014 Insufficient repayment
89,306,685
2005-2014
Repayment of
Rs 45,100,000 in
Dec.2014
Irrigation Authority (Note 3)
246,369,308 165,174,122 1983-2014
National Transport Corporation
(Note 4)
154,071,448 264,768,794 1988-2014 Insufficient repayment
Mauritius Meat Authority
5,669,085
- 1986-1990
No repayment since
August 1996
No repayment since
1980
Mauritius Broadcasting
Corporation
48,346,126 16,602,915 2010-2014
Outstanding since
2011
Rose Belle Sugar Estate (Note 5)
70,227,827 87,540,035 1982-2013
Request for write off
Wastewater Management
Authority
54,150,519
2014
Outstanding since
2014
Other Bodies
BPML Freeport Services Ltd
5,329,151 34,449,183 1999-2014 Insufficient repayment
National Housing Development
Corporation
4,360,193
Small Scale Industries (Note 6)
168,101
Business Parks of Mauritius Ltd
MCCB Ltd (in liquidation) (Note
7)
Bus Companies (Note 8)
Mauritius Shipping Corporation
Rodrigues Regional Assembly
Total
3,966,614
2014
972,153 1985-2014
Insufficient repayment
No repayment since
1992
3,200,022 49,499,826 2003-2014 Insufficient repayment
81,308,000 61,817,796 1997-2014
4,460,006
-
1979
22,200,000 14,585,357 2011-2013
1,855,875
2,432,515 2011-2014
1,228,135,636 969,388,231
28
ANNUAL FINANCIAL STATEMENTS
In liquidation
No repayment since
1992
Outstanding since
2011
Outstanding since
2011
2,197,523,867
As 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 –IVTB
The ex IVTB contracted two loans of FF 14 million and FF 21 million from the Agence
Française 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 Industries
Loans 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.
29
ANNUAL FINANCIAL STATEMENTS
Note 7: MCCB Ltd (in liquidation)
MCCB ltd is in liquidation and the liquidator has not yet repaid the loan.
Note 8: Bus Companies
Bus 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 2014
During the financial year 2014 Government advanced new loans to the five bodies stated in
Table 2-17.
Table 2-17 New Loans
Bodies
Rs
Central Water Authority
594,828,158
Waste Water Management Authority
702,488,725
SPV/Knowledge Park Ltd
220,424,778
Mauritius Broadcasting Corporation
18,000,000
Private Individuals
123,022
Total
1,535,864,683
Loan to Central Water Authority (CWA) – Rs 594,828,158
An 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.
30
ANNUAL FINANCIAL STATEMENTS
Loan to Wastewater Management Authority (WMA) - Rs 702,488,725
A 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 220,424,778
The 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 million
Government 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 Revenue
Arrears 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 Revenue
Financial Year
Arrears of Revenue
Rs
2010
6,505,963,033
2011
6,558,064,757
2012
6,927,931,061
2013
8,386,240,505
2014
8,471,499,677
Annual 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.
31
ANNUAL FINANCIAL STATEMENTS
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 2014
Ministries/Departments
Rs
Mauritius Revenue Authority
10,774,501
The Treasury
333,362
Registrar- General’s Department
Companies Division
9,958,345
52,727,907
Ministry of Health & Quality of Life
Judiciary
1,250,000
55,566,834
Total
130,610,949
2.6.1 Age List of Debtors
Table 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.
32
ANNUAL FINANCIAL STATEMENTS
Table 2-20 Aged List of Debtors as of 31 December 2014
Ministries/
Departments
Prior to 2013
2013
2014
Rs
Rs
Rs
Mauritius Revenue Authority
Income Tax
1,103,176,820
(Including Large
Taxpayer)
Value Added Tax
1,222,839,616
Unallocated
Rs
Total
Debtors as of
31.12.14
Rs
396,103,754
486,439,884
-
1,985,720,458
445,698,724
584,469,216
-
2,253,007,556
Customs and Excise
5,598,207
3,002,842
57,902,986
-
66,504,035
Betting and Gaming
80,608,705
104,686,848
48,868,036
-
234,163,589
-
2,007,014
Sales Tax
2,007,014
Environment
Protection Fee
6,840,261
11,294,216
8,571,059
-
26,705,536
45,505,145
40,705,452
41,895,003
-
128,105,600
47,914,555
27,080,136
47,999,116
-
122,993,807
7,682,122
17,812,522
34,859,944
-
60,354,588
2,522,172,445
Sub-total
Other Ministries and Departments
Civil Aviation
27,034,392
1,046,384,494
1,311,005,244
-
4,879,562,183
997,253
4,280,931
-
32,312,576
54,036
-
139,976
21,230
-
21,230
211,709
-
211,709
Pay As You Earn
Tax Deduction
Scheme
Others
Industry (Commerce
Division)
Public Infrastructure
(Land
Transport
Division.)
Fire Services
85,940
Companies Division
139,121,586
36,683,468
52,456,393
-
228,261,447
Education and
Human Resources
Tourism and Leisure
134,799,250
2,964,207
-
-
137,763,457
710,128
360,962
107,309
-
1,178,399
976,379
12,000
166,033
Public Infrastructure
(Public Infrastructure
Division)
Renewable Energy
and Public Utilities
Health and Quality of
Life
Police Force
1,154,412
-
6,654,391
5,739,672
377,840
707,645
-
6,654,391
1,120,787
-
7,238,299
866,259
-
1,573,904
continued
33
ANNUAL FINANCIAL STATEMENTS
Table 2-20 Aged List of Debtors as of 31 December 2014(continued)
Ministries/
Departments
Local Govt. and
Outer Islands
Ministry of Public
Infrastructure
(Shipping Division)
National Transport
Authority
National Audit Office
Attorney General's
Office
Ministry of
Labour,IR Empl.
(Employment
Division)
Ministry of Arts and
Culture
PMO (Data
Protection Office)
Industrial Court
Intermediate
Criminal Court
Judicial Courts
Commercial Courts
Judicial Others
The Treasury
Prior to 2013
2013
Rs
235,620
2014
Rs
Rs
24,000
Rs
-
Rs
259,620
332,478
197,367
299,316
-
829,161
30,734,000
3,739,000
3,159,000
-
37,632,000
-
1,530,000
178,275
-
558,590
257,834
-
257,834
895,000
-
895,000
1,530,000
292,605
87,710
3,064,850
3,277,400
4,984,850
-
11,327,100
108,350
67,200
77,000
-
252,550
3,562,804
6,030,441
25,559,140
-
35,152,385
10,596,784
2,280,800
10,772,925
-
23,650,509
62,580
1,750
780,860
54,600
70,000
1,564,208,848
223,588,719
418,383,509
120,992,886
159,405,209
87,274,536
157,155,449
Registrar- General
Housing and Lands
Unallocated
Total
Debtors as of
31.12.14
Social Security, NS
and RI
Agro Industry and
Food Security
Sub-total
2,089,447,310
Grand Total
4,611,619,755
-
64,330
-
905,460
319,164,402
-
2,206,181,076
440,157,288
403,835,194
435,027
3,253,746
3,688,773
2,483,980
5,766,844
8,250,824
369,525,253
804,779,939
328,184,992
3,591,937,494
1,415,909,747
2,115,785,183
328,184,992
8,471,499,677
34
ANNUAL FINANCIAL STATEMENTS
2.6.2 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 2014
Rs
Loan
2,197,706,569
Accident and Claims
8,474,508
Total
2,206,181,077
The 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.
35
ANNUAL FINANCIAL STATEMENTS
36
ANNUAL FINANCIAL STATEMENTS