Loopholes in the ‘Illegal’ Fuel-Transport Contract Between Ex-Government & Betamax

A meeting was held yesterday, 4th of February, at the Prime Minister’s Office to put into perspective the Betamax affair. Roshi Bhadain, Minister of Good Governance, affirmed that the legal procedures pertaining to the public Procurement Act were not respected by those involved in the Betamax contract; according to this regulation, the call for tenders, the grant of the contract and the signatures must absolutely be approved by the CPB.

Red Eagle, the ship that would transport fuel to the country

The government argues that valid reasons exist that have triggered the termination of the “illegal” contract given out to Betamax. The ex-government had signed a contract with the firm Betamax for the transport of fuel to the country. The new government set up by Alliance Lepep had recently pointed out certain ‘loopholes’ in the contract. Minister of Good Governance, Roshi Bhadain, explained that there had been no call for tenders, and that the contract and signatures were not endorsed by the Central Procurement Board (CPB).

On the other hand, Betamax still insists that every procedure was done in line with the law.

As such, the documents relevant to the contract have been sent to the police and an investigation has been opened to shed light on the controversial issue.

Minister Roshi Bhadain pointed out that the Betamax contract had led to expenses of around Rs 350 million each year. The total amount of money spent in this endeavour must have been about $ 121 million. The figures are based on the calculations of the general director of the State Trading Corporation, Megh Pillay.

Roshi Bhadain also added that one of the clauses of the first contract dictated that the cost of the fuel would be aligned with the global trend. Thereafter, it was decided that the contract would be breached, were this condition not to be respected. But, when a new contract was made between the two parties, this condition seems to have been overlooked, according to Roshi Bhadain.

Meanwhile, the Minister of Industry, Commerce, and Consumer Protection, Ashit Gungah, has reassured the population that the necessary procedures for the provision of fuel to the country have been done. The last delivery by Betamax has just been made, and before the end of this month, two ships are expected to come from India for the fuel provision, for what will be a temporary measure.

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