A court in Mauritius on Monday granted bail to former Finance Minister Renganaden Padayachy, who faces embezzlement charges tied to a COVID-19 relief fund scandal involving millions of dollars. Padayachy and former Central Bank Governor Harvesh Seegolam are accused of misappropriating approximately $6.7 million from the Mauritius Investment Corporation (MIC)—a state-backed entity established during the pandemic to support struggling businesses. Both men have denied the allegations.
Seegolam was released on bail last week, and the Financial Crimes Commission (FCC), Mauritius’ anti-corruption watchdog, did not object to Padayachy’s bail application during Monday’s hearing. The case is part of a widening probe launched by the new government led by Prime Minister Navin Ramgoolam, who returned to power after his Labour Party ousted the Militant Socialist Movement (MSM) of former Prime Minister Pravind Jugnauth in the November 2024 general elections.
Ramgoolam’s administration has accused the previous government of manipulating economic data—including inflating growth figures and underreporting debt and budget deficits. As part of a broader crackdown, Ramgoolam ordered a comprehensive audit of public finances in January. Jugnauth himself was arrested in February on money laundering charges, though he was later released on bail. He denies any wrongdoing.
The MIC, the fund at the center of the case, was created under Jugnauth’s leadership in 2020 using reserves from the Bank of Mauritius. It was meant to provide liquidity and equity support to businesses hit by the COVID-19 pandemic. Authorities now allege the fund was mismanaged and used for personal or political gain by top officials in the previous administration. Investigations are ongoing, and more arrests or charges are expected as the financial audit progresses.
