Mauritius has issued an arrest warrant for former finance minister Renganaden Padayachy as part of an investigation into alleged embezzlement, according to a police notice published in local newspapers on Tuesday. This comes shortly after the arrest of the former central bank governor, Harvesh Seegolam, who was released on bail over the weekend after facing charges of conspiracy to commit fraud.
The actions against Padayachy and Seegolam mark the first significant steps taken by the government of Prime Minister Navin Ramgoolam, who has accused the prior administration of manipulating GDP, budget deficit, and public debt figures for years.
Padayachy has not yet responded to requests for comment, while Seegolam’s lawyer declined to make any statements following his release from detention on Saturday after the fraud conspiracy charges were filed.
In a report delivered to parliament, Ramgoolam, who also serves as finance minister, alleged that the central bank had printed money to finance the state-owned Mauritius Investment Corporation, established in 2020 to support businesses affected by the COVID-19 pandemic.
Padayachy’s arrest notice indicated that the investigation pertains to “an alleged embezzlement involving the disbursement of 45 million rupees to the detriment of the Mauritius Investment Corporation (MIC), favoring the company Menlo Park Ltd.”