The disputed Mauritius Revenue Authority (MRA) Bill has finally and unanimously been voted at the National Assembly. This new authority aims at grouping all the State revenue departments under the same umbrella. After shilly-shallying and strikes by the unions, a consensus has been reached to satisfy both government and unions. However, the government seems to have paid a very high price to attain such a consensus: the price of the very ideology that originally led to the reform.

In outline, the MRA seems to have attained its goal. According to the prime minister, Paul Bérenger, and the deputy prime minister and minister of Finance, Pravind Jugnauth, the bill was voted in and for the national interest. The goals pursued were respected: fight tax evasion, eliminate corruption at customs and have a modern and more efficient tool to adapt to globalisation.

In fact, the government has had to make “major” concessions, as the prime minister admitted himself, to ensure the social stability of the country. Unions have showed their discontent and irresponsibility through strikes that could have handicapped the whole country the week before the bill was voted. Yet, the government has given assurance that no civil servant would lose his/her job in this reform. Moreover, discussions concerning the bill had to be postponed at the opposition leader’s request, because a situation of “deadlock” was arising between unions and government.

Navin Ramgoolam says he is very “proud” that both parties involved in the conflict succeeded in finding a solution thanks to him. He positioned himself as the go-between and finally emerged as the saviour. Even the prime minister admitted that “for once, the opposition helped him in the conflict.” Navin Ramgoolam seems to have won this political battle.

But what the latter does not mention is that the amendments to the bill, under the unions’ pressure and threat to totally upset the country with a strike of the whole civil service, have somewhat diminished the impact of the very necessary reform.

First of all, the selection method to enter the new authority, which was supposed to apply to 300 people, will only apply to 100 employees from the senior management. The other employees of the MRA will be automatically transferred. In other words, incompetent civil servants in the different authorities grouped under the MRA will now be incompetent servants of the MRA.

If the board of the MRA cannot offer an equivalent job to a civil servant within the MRA or in other governmental departments, then he/she can retire under an additional pension scheme representing one sixtieth of his/her wages for every six years’ service in addition to what he/she would normally get.

The invitations for applications have also been subject to changes. They were supposed to apply to both civil servants and members of the public. But unions put pressure to obtain that applications from civil servants be given priority. The public will be able to make an application only if civil servants do not correspond to the profile sought.

Finally, the procedures for the nomination of the MRA president have also been changed. He will not be nominated by the prime minister as previously announced but his nomination will be made by the president of the Republic in consultation with the prime minister and the opposition leader.

Navin Ramgoolam has declared that he is not happy with this system. In view of what happened for the nomination of Ashok Radhakissoon at the head of the Independent Broadcasting Authority – he was nominated again despite disagreement expressed by the opposition leader – he is afraid that the MRA will be subjected to political will. He says he totally agrees with the tax reform as well as the implementation of the MRA but fears that the new authority is a way for the present government to interfere in the tax affairs of the country.

The government, through Paul Bérenger and Pravind Jugnauth, says it is fully satisfied with the fact that the MRA has been voted. They consider that the mainstream of the reform remains. Pravind Jugnauth hardly expressed his discontent towards the unions apart from the comment that their behaviour was “totally irresponsible”.

Hence, the unions got off lightly. It is not astonishing that unionists show their total satisfaction with the way the MRA was finally dealt with by the government and with the final version of the bill. The government has accepted to turn the page… Good for them… Too bad for the fight against corruption!

<I>“In view of what happened for the Ashok’s Radhakissoon nomination at the head of the IBA, Navin Ramgoolam is afraid that the new authority be subject to political will.”</I>