Mauritius deep in corruption scandal as Macron visits

Time of India

22-04-2025

File Photo
PORT LOUIS: With a former minister and central bank director embroiled in financial scandal, the island idyll of Mauritius is in political turmoil as French President Emmanuel Macron visits this week.
At the centre of the mess is ex-finance minister Renganaden Padayachy, who was until recently seen as a key figure in making Mauritius one of Africa's few economic success stories.
Right-hand man to the recently ousted ex-prime minister Pravind Jugnauth, Padayachy was arrested last week, accused of defrauding the Mauritius Investment Corporation (MIC), a firm set up to support businesses during the Covid-19 pandemic, of some $8 million.
Harvesh Seegolam, former head of the central bank, which controlled the MIC, is also under investigation.
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Padayachy's party, the Militant Socialist Movement, has hit back, accusing the new government which took power in November of using the judiciary to "neutralise" the opposition.
A close associate of Padayachy, who spoke to AFP on condition of anonymity, claimed it was part of "a vendetta" against the former premier, Jugnauth.
'Mafiosi'
Two dynasties have dominated Mauritian politics since its independence from Britain in 1968.
Jugnauth, 63, succeeded his father after his death in 2017.
He was heavily defeated in November by Navin Ramgoolam, 77, who had already served twice as prime minister, and whose father was the country's first post-independence leader.
Ramgoolam has branded his rival's former government "mafiosi", alleging they "acted as if Mauritius belonged to them".
He himself was prosecuted in 2015 for obstruction of justice and money laundering -- but says those charges were "political revenge".
Mauritius is often seen as a model of stability and prosperity in Africa, but analysts have pointed to rising corruption and the political capture of institutions.
A wire-tapping scandal last year in which the private conversations of senior politicians, police and business figures were released online, suggested wrongdoing at the highest levels.
In February, Jugnauth was arrested as part of a money-laundering investigation, and is currently out on bail.
Documents bearing his name were found at the homes of two suspects, along with luxury watches and suitcases of cash.
"This isn't revenge, it's a clean-up. We need to clean up the republic," Ramgoolam told parliament.
'Melting like butter'
The accusations could have an economic impact for Mauritius, where banking has been a major driver of its move into high-income status.
The country has long been accused of facilitating tax evasion, but has made efforts to tackle money-laundering and terrorism-financing, earning its removal from the European Union's so-called "grey list" of high-risk countries in 2022.
"What made us strong -- transparency, stability, and seriousness -- is melting like butter in the sun," said a foreign investor, who did not wish to give his name for fear of repercussions.
Roshi Bhadain, a former minister of financial services and good governance in Jugnauth's government, who has now set up his own party, said the country could not simply rely on its exotic image and tourism industry.
"We can no longer hide behind coconut trees," he told AFP. "Either we clean up, or we go under."
Macron arrives in Mauritius on Thursday, where he will stay for 24 hours as part of a regional tour.
Padayachy also holds French nationality so "France is closely monitoring compliance with procedural rights in this case," according to a French diplomat, also speaking on condition of anonymity.
"But France will also be careful not to be perceived as interfering in the legal proceedings of a sovereign state."