Mauritius has issued an arrest warrant for its former finance minister, Renganaden Padayachy, as part of an investigation into allegations of embezzlement. According to a police notice published in local media on Tuesday, Padayachy is accused of being involved in a financial scandal concerning the misappropriation of 45 million rupees from the Mauritius Investment Corporation (MIC), a state-run entity established to help businesses cope with the economic impact of the COVID-19 pandemic. The funds were allegedly diverted to benefit Menlo Park Ltd., a private company, raising serious concerns about potential corruption and misuse of public funds.
The warrant for Padayachy’s arrest follows the recent detention of Harvesh Seegolam, the former governor of the Bank of Mauritius, who was charged with conspiracy to commit fraud. Seegolam was released on bail over the weekend. The charges against both officials represent a significant development in the government of Prime Minister Navin Ramgoolam’s ongoing efforts to address alleged financial mismanagement by the previous administration.
Ramgoolam, who also holds the finance ministry portfolio, has publicly accused the former government of manipulating critical economic indicators, including GDP, budget deficits, and public debt figures. These allegations have raised questions about the integrity of the country’s economic governance over recent years.
The investigation has now expanded to include accusations that the central bank may have printed money to finance the MIC, further complicating the financial landscape during the pandemic recovery. Ramgoolam’s administration is under increasing pressure to ensure transparency and accountability in the handling of public funds.
Padayachy has not responded to requests for comment on the arrest order. Similarly, Seegolam’s lawyer declined to provide any statement following his release. The unfolding case highlights the broader challenges facing Mauritius as it grapples with economic recovery and efforts to restore public trust in its financial institutions.