Government, IOT approve changes to their agreement
The government has signed several important amendments to the Indian Ocean Tuna (IOT) shareholders’ agreement with MWBrands SAS of France.
The signing, which ended three weeks of negotiations between the Seychelles team and its partners, took place on Friday afternoon at Liberty House.
Vice-President and Minister for Finance Danny Faure, principal secretary of the same ministry Ahmed Afif and Captain Guy Adam of the Société Seychelloise d’Investissement (SSI) signed on behalf of the government, while Adolfo Valsecchi and Joe Madnack – chief executive and chief finance manager – signed for MWBrands.
Also present were chief executive of the Seychelles International Business Authority Steve Fanny.
Speaking after the signing, Mr Faure said under this new agreement all foreign workers at the IOT will now pay income tax, which will mean a great contribution to the economy.
It also means the country will earn more in terms of dividends, which will in turn allow the government, through the Ministry of Finance, to inject more money into the economy in its annual budget.
It will also bring more opportunities for Seychellois to work at the factory.
The partners have also agreed to increase the number of tuna fishing boats in operation so the IOT will be able to increase production.
Mr Faure said the previous agreement reflected our economic situation before 2008, and provided certain concessions such as, for instance, foreign workers not having to pay social security contributions.
This was done because the government was allowing the company concessions it believed were necessary for it to set up and develop its business.
Mr Faure said the situation has now changed. Taking into account the new economic realities, the government is honouring its commitment to the people that it will review its agreements with various companies including its partners in IOT.
It is based on these guidelines that the government has negotiated this new agreement, said Mr Faure, who expressed satisfaction at the outcome of the talks between the Seychelles negotiating team and the partners.
Mr Afif pointed out that under this new agreement Seychelles is expected to earn around €4 million directly through dividends and income tax, and another €2 million as extra revenue through other activities related to production.
Also key in this agreement is the commitment by each shareholder to continue supporting the global competitiveness of IOT, as well as the government’s commitment to preserve and build a strong foundation for the future, he added.
Based in the Seychelles International Trade Zone, IOT is the second largest tuna processing and canning plant in the world. It processes mainly tuna of the yellowfin and skipjack varieties, and employs around 2,400 people.
The government holds a 40% equity stake in IOT through the SSI, with the remaining 60% controlled and owed by MWBrands based in Paris.
Source: NATION 8-17-10