The general assembly of shareholders of the national airline was held in an electric atmosphere. After the announcement of the managing director of Air Mauritius, Nirvan Veerasamy, that he did not want to renew his contract, the shareholders present wanted more information about such a decision. But Nirvan Veerasamy stayed on his guard during the three-hour assembly and refused to say more on the issue. He however appeared annoyed on several occasions, especially when asked details about the allegations of conflict of interests with Air Seychelles. It is only later that he revealed that a “difference of opinion” with the chairman is the main cause of his resignation, a difference that the latter still denies.

On Thursday, in other words one day before the general assembly, the board of Air Mauritius released a communiqué concerning the decision of the managing director not to apply for renewal of his contract. Even though the latter had always denied he was having difficulties in his post and was thinking of resigning, rumours had been rife during the past few months about his possible resignation.

His problems started when Member of Parliament (MP) Suren Dayal put questions to the minister of Tourism, Xavier-Luc Duval, on the interests of Nirvan Veerasamy in Air Seychelles. He implied that there might be a conflict between his position at Air Mauritius and his shares in Air Seychelles to the detriment of the local airline.

But sources at government house make it clear that this resignation has nothing political in it. Even Suren Dayal himself said he was surprised by Nirvan Veerasamy’s decision and insisted that he had “no personal grudge against Mr. Veerasamy. This government was elected on the fundamental principles of transparency and good governance in the management of state affairs”.

In fact, Nirvan Veerasamy has always denied such a conflict of interests. Even during the general assembly, when he was asked by the MP to give more details about the “great deal” between Air Mauritius and Air Seychelles, he clearly said that Air Mauritius did not lose “Rs 500 million on any of its routes – as implied by the MP – and the advantages of the deal with Air Seychelles cannot be estimated in merely financial terms”.

The managing director of Air Mauritius even lost his temper when Jack Bizlall ironically said that the interests of a managing director should be checked before he is employed. He did not reply to the irony but preferred to give details about how well Air Mauritius upholds safety rules and expressed his satisfaction with the measures taken.

<I>Sources at government house make it clear that this resignation has nothing political in it. Even Suren Dayal himself said he was surprised by Nirvan Veerasamy’s decision and insisted that he has no personal grudge against Mr. Veerasamy.</I>

The chairman of the board, Sanjay Bhuckory, also remained quiet on the reasons for Nirvan Veerasamy’s departure while asserting that his relations with the latter were still cordial. However, Nirvan Veerasamy finally admitted that his resignation was due to his difficult relationship with the chairman because he could not stand the latter’s interference in the daily management of the company.

When questioned about the reasons for his resignation just after he announced his decison, Nirvan Veerasamy however never mentioned such problems. He only cited “serious disagreements between members of the management of Air Mauritius on the way the company had to be managed”. He made it clear that the local airline needed to bring about a “radical change to avoid huge problems” and added that only unity would allow the company to “get through the coming storm”.

The spokesperson of Nirvan Veerasamy, Robert Alizart, who left his post as communications manager of Air Mauritius on 15th September, revealed that “Nirvan Veerasamy has not been supported in his reform and recovery plan for Air Mauritius by the high executives of the company and the people around him”.

Until a new managing director is found, the board has appointed the financial director, Cornwell Muleya, and the marketing director, Rajah Indradev Buton, to deputise.