Authorities in Mauritius have arrested former finance minister Renganaden Padayachy and ex-central bank governor Harvesh Seegolam in connection with an ongoing investigation into the alleged embezzlement of state funds, the country’s financial crimes commission confirmed on Wednesday.
The arrest of the two senior officials marks a significant development in Prime Minister Navin Ramgoolam’s sweeping audit of public finances, launched shortly after his election victory in November. The investigation centres on the alleged misappropriation of 300 million Mauritian rupees (approximately $6.7 million) from the Mauritius Investment Corporation (MIC), a state-backed entity created to support businesses during the COVID-19 pandemic.
The Financial Crimes Commission stated: “Renganaden Padayachy and … Harvesh Seegolam have been arrested this afternoon following new evidence brought into the enquiry of alleged embezzlement of 300 million Mauritius rupees.”
Both Padayachy and Seegolam have denied any wrongdoing. They did not respond to media requests for comment on Wednesday.
The arrests come amid broader accusations by Ramgoolam’s government against the previous administration, under which both officials served. The current government alleges that key economic indicators, including GDP growth, public debt, and budget deficits, were systematically manipulated to mislead the public and investors.
The MIC, at the centre of the controversy, was instrumental in Mauritius’ economic recovery efforts during the pandemic. Its mandate included providing financial support to distressed companies to safeguard jobs and stabilise the economy.
The rupee traded at 44.75 to the U.S. dollar on Wednesday, amid investor concern over the unfolding scandal. As the investigation deepens, the case threatens to further shake public confidence in Mauritius’ financial governance and could have broader implications for its economic credibility in the region.
