The governor of Mauritius’ central bank consents to step down

Prime Minister Navin Ramgoolam called for the resignation of Mauritius’ Central Bank Governor Rama Sithanen, who agreed to stand down next week amid indications of a power struggle within the bank.

Sithanen stated in a televised speech on Saturday night that “I think it is the right thing for me to step down, for the stability and tranquility of the institution, and for the best interest of the central bank and the country.”

“I have agreed to resign, and I will do so next week.”

According to Prime Minister Ramgoolam, he urged the governor to step down “in order for the Bank of Mauritius to regain its serenity” earlier on Saturday, although he did not doubt his ability.

It was obvious that Rama Sithanen’s stance was no longer viable. “This situation is unacceptable,” Ramgoolam declared, adding that he would name a new governor and second deputy governor on Monday.

Gerard Sanspeur, the deputy central bank governor, resigned on August 29 following a disagreement with the governor’s son, whom he claimed was attempting to interfere in the institution’s operations. Sanspeur was designated as the second deputy governor.

Sanspeur stated during a news conference last month that the governor’s son “wanted to interfere in tender procedures, hiring and firing employees, and banking licenses.”

According to Sithanen, his son was not guilty of the charges.

He remarked, “One thing I can assure you is that no decision taken by the central bank was ever determined by the messages between these two persons,” referring to the second deputy governor and his son.

“To have a fair hearing,” Sithanen stated, he would meet with the prime minister.

The governor’s contribution to raising the Bank of Mauritius’s main performance metrics was praised by Ramgoolam. At the end of August, annual inflation was 3.3%, although the rupee had gained about 6% versus the dollar since the year began, according to Ramgoolam.