Mauritian police have issued an arrest warrant for Harvesh Kumar Seegolam, the country’s former central bank governor, as part of an investigation into a conspiracy to defraud. This marks a significant move by the anti-money laundering unit under the new administration of Prime Minister Navin Ramgoolam.
The development follows accusations by Ramgoolam that the previous government manipulated key economic indicators, including gross domestic product (GDP), budget deficits, and public debt figures, over several years.
According to a notice published in local newspapers on Sunday, Seegolam, who is currently abroad, will face arrest upon his return to Mauritius. Authorities have provided limited details about the charges, and attempts to contact Seegolam for comment have been unsuccessful.
In a parliamentary report, Prime Minister Ramgoolam accused the Bank of Mauritius, under Seegolam’s leadership, of reckless monetary practices, including printing money to fund the Mauritius Investment Corporation (MIC). Established in 2020, the MIC was intended to support businesses hit by the COVID-19 pandemic using the central bank’s foreign exchange reserves.
Ramgoolam’s report claims that instead of drawing from reserves, the Bank of Mauritius printed money to finance the fund, a move he described as having “deleterious effects on the monetary system,” further straining an already liquidity-heavy banking sector.
“The printing of money by the Bank of Mauritius to fund the MIC was an irresponsible act,” the report stated, warning of long-term damage to the Mauritian economy.
This action marks the first major anti-corruption move by Ramgoolam’s government since taking office. The administration has pledged to address alleged mismanagement by the previous regime and restore confidence in Mauritius’s financial institutions.
The allegations against Seegolam and the previous administration have raised concerns about economic governance and transparency in Mauritius, further fueling public scrutiny of the country’s leadership during a challenging economic period.