Mauritius: Minister Uteem Provides Updates Regarding Star Knitwear

9 July 2025
Government of Mauritius (Port Louis)

The Minister of Labour and Industrial Relations, Mr Muhammad Reza Cassam Uteem, gave a press conference today at the seat of his Ministry in Port Louis to provide updates regarding the situation at Star Knitwear company.

Minister Uteem recalled that in December 2024, Cabinet set up an interministerial committee to discuss with the Management of Star Knitwear in a bid to find a solution regarding the various issues faced by the company. He deplored that despite discussions, the company laid off some 196 foreign workers and 237 Mauritian workers in January 2025.

He pointed out that the Ministry made the necessary arrangements for some 218 Mauritian workers to be enrolled on the Workfare Programme, while trying to redeploy some of the workers in other companies. Some 47 persons were employed by other firms and some 99 workers decided to go back to their home country, he said.

Minister Uteem moreover underlined that despite Government's efforts to help Star Knitwear to stay afloat, the company now owes some Rs 1.5 billion to various stakeholders (including the Mauritius Investment Corporation and the Central Electricity Board) despite having assets valued at only some Rs 200 million. Government thus decided to put Star Knitwear into administration and Mr Mustaq Oosman was been appointed Receiver Manager to oversee the process.

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The Receiver Manager was also tasked to investigate whether there has been any misappropriation of funds as the company received financial support from the MIC and MauBank Limited.

Furthermore, the Minister dwelt on living conditions of foreign workers in dormitories and informed that the Receiver Manager assured that adequate food and cleaning services will be provided to them. The Ministry will also facilitate the redeployment of foreign workers who still have a valid work permit, while a solution would have to be found regarding those who wish to return to their home country, he added.

As for some 312 Mauritian working at Star Knitwear, the Redundancy Board will have to determine whether they are still employed by the company before being able to register them for the Workfare Programme. The Wage Guarantee Fund can also be used to pay workers of Star Knitwear who have not yet received their salary for the month of June 2025, stated the Minister.

Read the original article on Government of Mauritius.

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