Friday, May 29, 2009

Why Some Mauritian Firms May Go Under

Here are some reasons:
  1. Bosses have been taking out too much money via excessive salaries and other perks such as gas-guzzling limousines
  2. Dividend policies are or have been at unsustainable levels
  3. Products are not competitive enough or haven't changed for ages
  4. Return on invested capital they are seeking are outlandish for the industry they are in
Obviously the last thing these kind of companies need is taxpayers' money. As a country we're better off to let them die. Given that Sithanen has said that there is no guarantee we will ever see the money disbursed via the controversial additional stimulus package again, I suggest a much better route. Provide Rs357,153 -- which is how much MEXA wants for each job it will try to save -- via a combination of grant and loan to each of the workers whose livelihood has been placed in limbo for them to start their own company. That's a much better deal.


Anonymous said...

Could not agree more, on every single point

Good point in Forum today too !!

How do we get more Mauritians to realise they are being taken for a ride ?

Daden Venkatasawmy

Sanjay Jagatsingh said...

Thanks. By spreading the word and have conversations and debates about it.

Sanjay Jagatsingh said...

Bizin find out ki de 4 rezon finn koz sa.