Port Louis: The financial stability of Mauritius has been jolted after Gerard Sanspeur, the second deputy governor of the Bank of Mauritius, abruptly resigned on Friday, alleging growing political interference in the country’s apex financial institution. His departure comes amid an escalating rift with Central Bank Governor Rama Sithanen and mounting pressure from the government, raising deep concerns about the autonomy and credibility of the central bank.
Sanspeur revealed that his resignation followed a phone call from Prime Minister Navinchandra Ramgoolam earlier in the day. He alleged that an influential individual, whose identity he chose not to disclose, had been exerting control over crucial central bank operations. According to him, this included attempts to influence banking license approvals, staff appointments and dismissals, as well as procurement decisions. “When I made it clear I didn’t want to collaborate with that person, things started to become difficult. Then came all sorts of traps designed to push me out,” he told reporters at a press briefing.
The Prime Minister had earlier signaled that the simmering conflict between Sanspeur and Governor Sithanen was intolerable, describing the feud as “unacceptable” for the country’s financial stability. While Ramgoolam did not directly demand Sanspeur’s resignation, the timing of their conversation and the subsequent announcement underscores the growing perception of political intrusion in the central bank’s internal affairs. Both the Prime Minister’s office and the Bank of Mauritius declined to issue additional clarifications.
Tensions at the central bank reportedly deepened over union recognition disputes, the audit of the Mauritius Investment Corporation, and the appointment of a new chairman for the State Bank of Mauritius. These flashpoints highlighted diverging views between Sanspeur and Sithanen and intensified suspicions about political interference in financial oversight. Sanspeur insisted that his principled stand on these matters had made his position untenable.
The resignation has sent shockwaves across Mauritius’ financial and political landscape, with observers warning of the risks it poses to investor confidence. The central bank has long been viewed as a pillar of independence in Mauritius’ governance structure, but the latest episode has cast a shadow over its credibility. Analysts caution that the turmoil could weaken the country’s ability to attract international investment at a time when economic recovery and currency stability remain critical.
For now, the government has remained tight-lipped, but the episode raises serious questions about whether the Bank of Mauritius can maintain its independence in the face of political pressure. Sanspeur’s departure has become a defining moment for the nation’s financial governance, one that could reshape perceptions of Mauritius as a trusted financial hub in Africa and beyond.