Takeover of Apollo Bramwell Hospital: digging around the deal

When the Finance Minister’s statements create confusion not only for the Opposition but for the identified buyers of the Apollo Bramwell Hospital, doubts certainly follow suit. What is the real deal behind the becoming of Omega Ark Hospital?

Is the takeover of Apollo Bramwell hospital by the so-called international conglomerate Omega Ark Group Plc a new scandal? The Opposition is of the opinion that it has uncovered another MedPoint Affair and hence its leader, Paul Bérenger, chose to put a Private Notice Question (PNQ) to Finance Minister Pravind Jugnauth on this issue on August 31. Government however maintains that Omega Ark was the best proposal obtained for the sale of the hospital in question.

The objective of the PNQ was to obtain from the Finance Minister more insight into this deal, especially regarding whether payment had been done or not. Certain questions, however, were left unanswered. This PNQ was also the spark that ignited political tensions anew between Paul Bérenger and Pravind Jugnauth when the leader of the Opposition compared the deal to another MedPoint Affair; with the whole thing stinking of “a fraud”. He voiced out the need to have a full-fledged commission of enquiry, chaired by a retired judge and two assessors. This led to heated arguments and both MPs lost their tempers. In contrast, a few days earlier, political observers had denoted a certain warm up between the two following Paul Bérenger’s comments on the National Budget presented by the Finance Minister. In a bid to try and shed light on this matter, Business Magazine met with Omega Ark Chairman Vickhram Katralh for a second time.

Deed of sale: confusing elements

If Pravind Jugnauth’s answers have left the Opposition dissatisfied and visibly irked, on the other hand, the management team of Omega Ark found themselves in a state of incomprehension vis-à-vis the statements met out by the Finance Minister in Parliament. Indeed, Pravind Jugnauth’s reply
consisted of certain confusing elements regarding the deed of sale for instance, which has not yet been signed. Invited to react, Vickhram Katralh stated being unable to intervene on the Finance Minister’s statement. Pressed for a reaction as to why Pravind Jugnauth and himself are not on the same wavelength, he chose to attribute it to a confusion regarding financial jargon/terms. The Asset Purchase Agreement for the acquisition of Apollo Bramwell hospital has been signed in July, Vickhram Katralh said. This will ultimately culminate in the Omega Ark Group purchasing the hospital. “Inevitably, along the way the ‘due diligence’ exercise has thrown up some challenges that we are addressing to ensure a timely handover,” he highlighted in an interview (featured further in our pages). For him, whatever has been mentioned in his answers can be validated in any court in the world. Furthermore, it is not the moment either to precisely say there is a dispute here, Vickhram Katralh added.

Another heated debate du-ring the PNQ was regarding how Omega Ark has already carried out a rebranding and is opera-ting the hospital when payment has not been effectuated as of now. To which, Pravind Jugnauth replied that he is not sure that they have taken over the hospital. “What I know is that discussions are being held with the employees; that contracts are being drawn,” he stated.

The rebranding, explained Vickhram Katralh, is part of the procedure to get the confidence of the staff back while awaiting two things: the lease and the pen-ding 18 permits. “Once these two things are in place, 100% completion will be done,” he said.

When questioned by Business Magazine on this matter, Pravind Jugnauth commented that the $11 million payment pending from Omega Ark has not yet been made since the deed of sale is yet to be signed. However, the very fact that the company has transferred $225,000 for the payment of salaries of current employees of the hospital shows that “they mean business”. The deed of sale, he stated, will be signed once Omega Ark obtains its lease and the permits required for operation. This is expected to be finalised by the end of September, according to Vickhram Katralh.

Payment of $11 million pending

The latter had also expressed his intention of meeting with Pravind Jugnauth last week to clear the air on this issue. When questioned however, the Finance Minister seemed visibly surprised and was unaware of any such request; even though he stated being ready to meet with Vickhram Katralh if needed “in spite of his (own) busy agenda.”

In the meanwhile, several questions remain unanswered for the Opposition, such as the beginnings of Omega Ark, since the company was incorporated in Hong Kong on 2^nd February 2012 as Jaganmyee Brothers Trading Private Limited and was renamed Aasure Holding Limited on 6^th February 2014 before becoming Omega Ark (HK) Limited on 2^nd February 2015. The leader of the Opposition has in fact deplored the lack of information on this matter. “There is no sign of UK company, or what have you, in February 2015 and it is only in October 2015 that Omega Ark Mauritius surfaces! Why are we not provided with all the information required?” And the same gentleman in the same interview said (quoting Business Magazine’s first interview of Vickhram Katralh) – “Our holding company is based in Singapore.” According to all the research I have done, another lie! Has the Minister enquired? Has government enquired? Supposedly, their holding company is in Singapore! A lie again! Why are we not told who is the final beneficiary? Who is behind this?,” cross-questioned Paul Bérenger during the PNQ.

While our request to Omega Ark to have distinct profiles on the composition of their board is yet to be met, Vickhram Katralh said the following: “Omega Ark Group and as such the Omega Ark hospital are 100% owned by myself, via our Singapore parent company.”

He attributed the various name changes of the company since its incorporation to the various internal reasons that lead all companies to undergo restructuring exercises. “As far as the real owners are concerned, here I am sitting in front of you,” he affirmed. As for Omega Ark Healthcare Investments, it was incorporated in Mauritius to bring confidence to clients and customers as a Mauritian company.