Manipulation Allegations: IMF to Assess Financial Institutions & Statistics Mauritius

In a parliamentary address on Wednesday 5th March, Prime Minister Navin Ramgoolam announced that the International Monetary Fund (IMF) will evaluate Mauritius’s financial institutions and Statistics Mauritius at the government’s request. This assessment, he disclosed, is part of a broader effort to illuminate and rectify the disturbing financial manipulations carried out by the previous administration.

Responding to a question from MP Kaviraj Rookny, Ramgoolam lamented the deliberate misrepresentation of economic figures by the former government, which he condemned as a deceitful tactic designed to create the illusion of a thriving economy.

“It was an illusion, a mirage,” he declared emphatically.

The PM revealed that the Gross Domestic Product (GDP) figures had been inflated by a staggering Rs 22 billion for 2023 and over Rs 36 billion for the following year.

Furthermore, he highlighted how budgetary deficits were understated by an alarming 1.8% of GDP for the fiscal year 2023-24 and by 3.3% in 2024-25.

Ramgoolam asserted that falsifying data was the only way for the previous government to obscure its fiscal and economic mismanagement, leading to a disastrous state of affairs. “But the truth has finally been unveiled,” he proclaimed.

The PM confirmed that those responsible for these manipulations have already been sidelined, but suggested that further actions may still be on the horizon.

He committed to rehabilitating governmental institutions to ensure their independence, promoting good governance and efficient operations.

“One example is the Bank of Mauritius, which has regained its independence to perform its duties,” he noted, adding that a reorganisation of key institutions, including the Economic Development Board and Statistics Mauritius, is underway.

The IMF’s assistance has been sought to strengthen these institutions and prevent future occurrences of financial misconduct.

The evaluation will encompass the Ministry of Finance, Statistics Mauritius, and the Bank of Mauritius, adhering to international standards in areas such as National Accounts, Price Indices, Monetary and Fiscal Statistics, Government Finance Statistics, and Balance of Payments.

Ramgoolam pointed out the significance of this evaluation, stating, “This assessment by the IMF has been long awaited; the last one was back in 2002.”

The initial focus will be on the structural reorganisation of Statistics Mauritius, particularly concerning the collection and dissemination of data.

“We are diligently working to restore the integrity of our statistics department after a decade of abuse.

A Steering Committee will be established under the Ministry of Finance to ensure coordination during the IMF evaluation and the implementation of recommendations,” the Prime Minister announced.

Moreover, the board of Statistics Mauritius will be restructured, with its presidency going to a qualified and independent professional.

He asserted, “With the support of the IMF, we will also ensure that no future government can manipulate data.”

In a pressing inquiry, MP Adrien Duval asked whether sanctions are in the pipeline for the director of Statistics Mauritius, who, according to the law, should be independent.

Ramgoolam responded cautiously, stating that he would not provide additional details but assured that further actions would indeed be considered in this context.

As the government embarks on this critical journey towards transparency and accountability, Mauritius is poised to reclaim its economic integrity.

Source: Le Mauricien