Former Mauritius Central Bank Governor Granted Bail in Fraud Probe

AFRICAN BUSINESS AND ECONOMYJanuary 5, 2025 at 11:41 PM UTC

TLDR

Harvesh Seegolam, Mauritius' former central bank governor, was granted bail on Saturday
That followed a provisional charge of conspiracy to defraud linked to a disbursement by the Mauritius Investment Corp
Seegolam, who served as governor from March 2020 to November 2024, was arrested upon his return from Dubai

Harvesh Seegolam, Mauritius' former central bank governor, was granted bail on Saturday following a provisional charge of conspiracy to defraud linked to a disbursement by the Mauritius Investment Corp (MIC), a central bank subsidiary.

Seegolam, who served as governor from March 2020 to November 2024, was arrested upon his return from Dubai and questioned over a 45 million-rupee ($946,000) disbursement to a high-risk company. Reports suggest the funds were secured before the general elections, bypassing opposition from the MIC’s board.

Prime Minister Navinchandra Ramgoolam has criticized the MIC, citing significant credit risks and losses. Seegolam’s arrest is the first result of an audit of public finances initiated under Ramgoolam's new government, which promises accountability for past financial mismanagement.

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Key Takeaways

Seegolam’s case underscores a push for accountability in Mauritius as the new government audits public finances. The MIC’s controversial disbursements have become a focal point, reflecting broader concerns about governance and financial risk under the previous administration. Prime Minister Ramgoolam’s pledge to hold officials accountable marks a significant shift in oversight, signaling potential further investigations into past financial and institutional mismanagement. The case highlights the delicate balance between political accountability and ensuring institutional stability in Mauritius' financial system.

Mauritius

Harvesh Seegolam

Economy

Central Bank

Fraud