Former Finance Minister and Governor of Mauritius Central Bank Freed on Bail Following COVID Fund Fraud Allegations

Both former Finance Minister Padayachy and former Governor Seegolam of the Mauritius Central Bank were released on bail following accusations of COVID fund embezzlement.

Harvesh Seegolam, the former governor of Mauritius’ central bank, and Renganaden Padayachy, the former finance minister, were arrested for allegedly embezzling 300 million Mauritius rupees ($6.7 million) from a state-backed COVID-19 assistance fund.

The two were arrested on Wednesday in relation to the continuing probe into the Mauritius Investment Corporation (MIC), a company set up to assist pandemic-affected businesses. Both men deny any misconduct.

Seegolam and the authorities are working together. Soon after confirming his client’s bail, his attorney stated, “He is providing all evidence and information related to this case.”

The Financial Crimes Commission said that although both individuals have been charged, it is still looking into Padayachy and initially opposed his release. His next court appearance is scheduled for April 17.
Defending himself against the accusations, Padayachy’s attorney Raouf Gulbul said, “In a match, it’s not the first player to score who wins.” The duration of a contest is ninety minutes. I have no fear of fresh accusations being made against my client.

The government of Prime Minister Navin Ramgoolam, which took office last November, is waging a larger war against corruption, and the arrests are part of that effort. The previous administration was accused by Ramgoolam of manipulating economic data, such as budget deficits, debt levels, and growth rates.

The new government ordered a thorough audit of the public finances as one of its first actions. In February, Seegolam and Padayachy were both detained on money laundering charges against former Prime Minister Pravind Jugnauth, whom he denies.

The incidents are escalating public demands for increased accountability and transparency in Mauritius’ public sector as investigations continue.