Police in Mauritius have ordered the former governor of the central bank to be arrested

The former governor of the central bank of the Indian Ocean islands is to be arrested by Mauritius police as part of an investigation into a case involving conspiracy to defraud.

According to Prime Minister Navin Ramgoolam, who claimed last week that the previous administration had fabricated the nation’s GDP, budget deficit, and public debt data for years, the police anti-money laundering unit’s move is the first major one from his administration.

In a notice published in Mauritius media on Sunday, police stated that Harvesh Kumar Seegolam, the former governor of the national bank, was presently abroad and would be detained upon his return.

They didn’t elaborate on the case’s specifics.

When asked for comment, Seegolam did not reply.

Ramgoolam further charged in a report submitted to parliament that the central bank had printed money to finance the government’s Mauritius Investment Corporation, which was established in 2020 to assist businesses in coping with the COVID-19 pandemic’s consequences.

According to Ramgoolam’s report, it was supposed to have been financed with the bank’s official foreign exchange reserves.

“The printing of money by the Bank of Mauritius to fund the MIC was an irresponsible act which has had deleterious effects on the monetary system, the more so that the banking system was already flush with excess liquidity,” the report stated.