The Mauritius Duty Free Paradise (MDFP) retail operation’s senior management has confirmed to TRBusiness.com that it has given Dufry three months notice to terminate its duty free purchase and supply agreement at SSR International Airport.

 

MDFP is 80% owned by Airports of Mauritius Ltd (AML) and 20% by the State Investment Corp and operates three duty free shops over more than 2,000sq m at SSR International Airport. MDFP is also the majority owner of Rodrigues Duty Free Paradise (RDFP) and its circa 600sq m store at Plaine Coarail Airport.

 

Over the last three weeks TRBusiness has contacted both Dufry and Mauritius Duty Free Paradise directly and on May 18 we asked Dufry if its purchase and supply contract with Mauritius Duty Free Paradise had been cancelled.

 

 

On May 20 Renzo Radice, Global Head Investor Relations & Corporate Communications replied that given the ongoing discussions, the company could not provide any further information at that time, although he did add the following: “Dufry is currently reevaluating the continuation of its supplier agreement with MDFP. This as a consequence of the current business environment in Mauritius, which includes a number of general investigations related to agreements signed by several companies in the past.”

 

TRBusiness also spoke and corresponded by email with Mauritius Duty Free Paradise on exactly the same day as we contacted Dufry. On this occasion we liaised with Teddy Sobrayen, Category Officer, Category Management Department, Mauritius Duty Free Paradise.

 

TRBusiness asked the following questions: ‘We have received information that the Mauritius Duty Free Paradise contract with Dufry has been cancelled and the police are investigating the MDFP company at present. Can you confirm what the exact position is please?’

 

 

‘We also understand that certain allegations have been made about Simo Carevic formerly with MDFP [former CEO-Ed] who has left the island and also about funds being sent abroad which are being linked in the local press with Dufry.’

 

Eighteen days after being contacted and in direct response to these questions, senior management at Mauritius Duty Free Paradise provided the following written statement yesterday (June 8).

 

“The Board of Directors of Mauritius Duty Free Paradise Company Limited has decided on 06 May 2015, to terminate the Duty Free Purchase and Supply Agreement with Dufry AG by giving three months’ notice pursuant to Clause 24.5 of the said Agreement. The decision was communicated to Dufry AG on 07 May 2015.

 

 

“The Police and the Independent Commission against Corruption are currently investigating into various aspects of the agreements signed between Mauritius Duty Free Paradise Company Ltd and Dufry AG since January 2012, including payments made to unauthorized parties. It would not be appropriate to give further information on the matter as any disclosure can prejudice the ongoing inquiry.”

 

TRBusiness now understands that MDFP’s business is being sustained by the last container shipments provided by Dufry under the previous arrangement. A number of companies have since indicated their interest in striking up a supply contract with MDFP, although there was no indication of any change of arrangements other than those mentioned as this report went to press. Gebr. Heinemann has supplied the retailer in the past.

 

Meanwhile, several allegations have been published in the local press as regards this matter and some high profile individuals have been repeatedly interviewed ‘on this issue’. However, allegations and local press comment do not amount to hard facts and TRBusiness will continue to follow this story as any ‘proven facts’ emerge.