Mauritius detains former finance minister and central bank governor in embezzlement case

The former central bank governor and finance minister of Mauritius was taken into custody by authorities on Wednesday in connection with an investigation into embezzlement at a state enterprise, according to the financial crimes commission of the Indian Ocean island nation.

Both former finance minister Renganaden Padayachy and former central bank governor Harvesh Seegolam denied any misconduct and did not reply to Wednesday’s demands for comment.

The previous administration, which the two former officials were part of, has been accused by Prime Minister Navin Ramgoolam’s government of fabricating data on public debt, budget deficit, and economic development for years.

One of Ramgoolam’s first actions after winning the election in November was to start an audit of the national finances.

“Renganaden Padayachy and … Harvesh Seegolam have been arrested this afternoon following new evidence brought into the enquiry of alleged embezzlement of 300 million Mauritius rupees ($6.70 million),” according to the financial crimes commission.

The alleged embezzlement probe concerns the theft of money from the Mauritius Investment Corporation, which was established to assist businesses in coping with the COVID-19 outbreak.