Mauritius construction giant Best Construct Ltd faces total liquidation as mounting debts reach Rs 800 million, forcing the sale of company assets and leaving creditors scrambling for recovery.
The Rose-Hill-based firm, founded in May 2002, entered receivership two months ago under the weight of catastrophic financial losses. Gerald Lincoln, Managing Partner at EY Ltd and appointed Receiver Manager, confirmed the company owes Rs 180 million to the Mauritius Investment Corporation (MIC) alone.
CWA Contract Dispute Triggers Downfall
Best Construct's demise stems from a disastrous mega-contract with the Central Water Authority (CWA) awarded in 2017. The Rs 848 million project involved replacing 91 kilometres of water pipes across Rose-Hill, Quatre-Bornes, Trianon and eastern regions.
Between October 2020 and May 2021, the CWA successively cancelled these contracts due to chronic delays and substandard quality. Best Construct failed to meet deadlines, ignored proposed mediation, and delivered below required standards.
The authority subsequently initiated legal proceedings to recover advances and activate bank guarantees.
The 2023 Supreme Court judgment (SCJ 257) rejected Best Construct's attempt to block guarantee encashment, ruling the CWA had legitimate grounds following contract termination for non-performance.
Asset Fire Sale Unlikely to Cover Losses
Twelve properties spanning the island are now being auctioned through sealed bids, with submissions closing September 26, 2025. The portfolio includes a massive 46,915 square metre plot in Pointe-aux-Feuilles, commercial spaces at Galeries Evershine in Rose-Hill, a furnished Calodyne bungalow, and a Port Chambly villa.
These assets, collectively valued at approximately Rs 100 million, represent only a fraction of outstanding debts. The MIC's Rs 180 million exposure includes interest on the original Rs 150 million loan advanced during 2022-23, which has never seen a single repayment.
Best Construct's 2022 financial statements revealed the company's dire position: turnover of Rs 59.1 million against production costs of Rs 69 million, administrative expenses of Rs 27.8 million, and financial charges of Rs 30.4 million, resulting in a net loss of Rs 68.1 million.
All employees were dismissed before receivership commenced, marking the complete operational shutdown.
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