Former Mauritius Central Bank Governor Faces Arrest Amid Fraud Inquiry

Police in Mauritius have ordered the arrest of Harvesh Kumar Seegolam, the country’s former central bank governor, as part of an ongoing inquiry into a conspiracy to defraud case. 

This significant development comes from the police anti-money laundering unit and marks the first major action under the new administration of Prime Minister Navin Ramgoolam. 

Last week, Ramgoolam accused the previous government of falsifying key economic data, including the country’s gross domestic product (GDP), budget deficit, and public debt figures, over several years. 

According to a notice published in local newspapers on Sunday, Seegolam, who is currently out of the country, will be arrested upon his return to Mauritius. However, authorities have not disclosed further details about the allegations against him. Attempts to reach Seegolam for comment have been unsuccessful. 

In a detailed report presented to parliament, Prime Minister Ramgoolam alleged that the Bank of Mauritius, under Seegolam’s leadership, had irresponsibly printed money to fund the Mauritius Investment Corporation (MIC). Established in 2020, the MIC was designed to support businesses grappling with the economic fallout from the COVID-19 pandemic. 

The fund was intended to draw from the central bank’s official foreign exchange reserves. However, Ramgoolam’s report claims that printing money for this purpose had “deleterious effects on the monetary system,” exacerbating an already liquidity-heavy banking sector. 

“The printing of money by the Bank of Mauritius to fund the MIC was an irresponsible act,” the report stated, emphasising the long-term damage to the economy. 

The allegations against Seegolam and the prior administration cast a spotlight on economic governance in Mauritius. Ramgoolam’s government has pledged to address past mismanagement and restore confidence in the country’s financial institutions. 

As the inquiry unfolds, the arrest of the former central bank governor is expected to spark further debate over the economic and political direction of the Indian Ocean nation.

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