Mauritius PM Alleges $27M Stolen from Air Mauritius
Mauritius’s Prime Minister Navin Ramgoolam has accused unnamed individuals of stealing MUR1.22 billion (approximately USD27 million) from Air Mauritius through a series of unprofitable aircraft sales between 2017 and 2021. Speaking on April 15 in the National Assembly, Ramgoolam responded to questions from MP Manoj Seeburn about the carrier’s financial performance and the government’s capital support over the past decade.
Ramgoolam revealed that Air Mauritius recorded a healthy profit of MUR359.2 million (USD8 million) in 2013–2014 but then suffered cumulative losses of MUR7.72 billion (USD171 million) from 2015 to 2024. He attributed a significant portion of these losses to the disposal of aging aircraft at steep losses: one Airbus A340‑300 sold in 2017–2018 under a leaseback deal generated a MUR107.8 million (USD2.4 million) loss; two Airbus A319‑100s and a single Airbus A330‑200 offloaded in mid and late 2021 cost the airline MUR975.1 million (USD21.5 million) in combined losses; and two more A340‑300s dismantled for parts under a June 2021 agreement added a further MUR137.2 million (USD3 million) in losses.
To meet urgent cash requirements while under voluntary administration, the government advanced MUR12 billion (USD266 million) to state‑owned Airport Holdings Ltd (AHL) in September 2021. Although Air Mauritius itself did not receive direct injections, Ramgoolam alleged that AHL was created within the Finance Ministry purely to manipulate national debt figures—grouping 23 entities including Air Mauritius and inflating net asset values by adding MUR41 billion (USD910 million) in “goodwill.” This artificial boost lifted total declared assets to MUR51 billion (USD1.13 billion), a figure later used to justify a MUR25 billion (USD555 million) investment by the Mauritius Investment Corporation for a 25 percent stake in AHL—despite World Bank estimates placing the real asset value at just MUR5 billion (USD111 million).
“In other words, someone stole the money. And we’re going to find out who,” Ramgoolam declared, promising thorough investigations and prosecutions of those responsible for misusing public finances. To that end, AHL has commissioned a forensic audit by KPMG into a MUR2.5 billion (USD55.5 million) working‑capital allocation that was diverted from its original purpose. The audit aims to trace the funds, assess whether proper authorization was granted, and identify any financial irregularities.
The prime minister’s allegations come just months after Air Mauritius emerged from Chapter 11‑style voluntary administration, having filed for protection in 2021 amid persistent losses, failed merger talks, and fierce industry competition. As Mauritius’s national carrier rebuilds, the government is also considering additional support measures for airlines that lease Boeing aircraft—another indication of the sector’s ongoing financial strain.
Air Mauritius now faces a critical period of financial and operational restructuring. With powerful parliamentary backing for transparent investigations, the airline and its state‑owned shareholder AHL must navigate the fallout from these allegations, restore public trust, and stabilize their balance sheets. The outcome of the KPMG audit and any resulting prosecutions will be closely watched by stakeholders across Mauritius’s aviation and political landscapes, as the country seeks to hold individuals accountable and protect public assets.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com