Port Louis: Mauritius has been plunged into a storm of institutional turmoil after Prime Minister Navin Ramgoolam called for the resignation of Rama Sithanen, the Governor of the Bank of Mauritius. The dramatic appeal, made on Saturday, comes at a time when confidence in the nation’s top financial regulator has been shaken by allegations of interference and mismanagement within its upper echelons.
The Prime Minister stressed that his decision was not directed against the governor’s technical competence but rather aimed at restoring credibility and trust in an institution central to the island nation’s financial stability. “The current situation at the central bank is unacceptable,” Ramgoolam declared, promising to swiftly install new leadership to reestablish what he called “serenity” in the system. He confirmed that a new governor and a second deputy governor would be appointed as early as Monday.
The crisis deepened last month when Gerard Sanspeur, the central bank’s second deputy governor and one of its most senior officials, abruptly resigned. In a stinging rebuke, Sanspeur accused Sithanen’s son of improper involvement in the bank’s affairs. He alleged that the governor’s son had been meddling in sensitive areas, including the issuance of banking licenses, staffing decisions, and the awarding of major contracts. Such claims, he argued, compromised the independence and integrity of the nation’s most vital financial institution.
Governor Sithanen, however, has categorically denied the allegations against his son. He has maintained that no undue influence was exerted on the bank’s decision-making and defended his tenure as one marked by stability and professionalism. Still, the controversy has persisted, eroding trust both inside and outside the institution.
Prime Minister Ramgoolam’s intervention signals a decisive attempt to stem the fallout. His insistence on restructuring the leadership suggests that the government views a complete shake-up as the only path forward. By preparing to fill both the governor’s seat and the vacant deputy governor’s role simultaneously, Ramgoolam appears determined to present a united and reformed team to the public and international observers.
As of Saturday evening, Sithanen had not issued a public response to the Prime Minister’s request for his resignation. The days ahead are expected to be pivotal, as markets, investors, and citizens alike await clarity on how the leadership vacuum at the central bank will be resolved.
For Mauritius, a nation whose reputation as a regional financial hub depends on the strength of its regulatory institutions, the outcome of this episode could have far-reaching implications. The choice of the next central bank leadership will not only influence domestic monetary policy but also shape investor confidence in the country’s financial governance.