Harvesh Seegolam, the former governor of Mauritius’ central bank, was charged with fraud on Thursday and released on bail, his lawyer confirmed, a day after being arrested alongside former finance minister Renganaden Padayachy.
The charges relate to the alleged embezzlement of 300 million rupees ($6.7 million) from the Mauritius Investment Corporation, a state-backed fund created to support businesses during the COVID-19 pandemic. Both men deny any wrongdoing.
“Seegolam is cooperating fully and providing all relevant evidence,” his lawyer told reporters.
The arrests come amid a sweeping probe by the new government of Prime Minister Navin Ramgoolam, who has accused his predecessor’s administration of manipulating economic data and mismanaging public funds. One of Ramgoolam’s first acts in office was to order an audit of state finances.
Former Prime Minister Pravind Jugnauth was also arrested in February on money laundering charges, which he denies.