Crisis at the Central Bank: PM Vows Resolution ‘By End of Week’

A public row between the Governor and Second Deputy Governor of the Bank of Mauritius (BoM) has prompted Prime Minister Navin Ramgoolam to intervene, with a promise of a swift resolution to the “unacceptable” conflict. The Prime Minister, speaking to Défi Media Group, stated that the open warfare between Governor Rama Sithanen and Second Deputy Governor Gérard Sanspeur was “doing harm” to both the institution and the country.

Mr Ramgoolam, who returned to the country recently from a trip to Japan, stressed that he hoped to resolve the issue “as quickly as possible” and “by the end of the week.”

He admitted to being weakened by influenza but affirmed that finding a solution to the BoM crisis remained a top priority.

The dispute between the two senior figures is rooted in several contentious issues, including the suspension of Chidanand Rughoobar, president of the Bank of Mauritius Employees Union (BOMEU).

Mr Sanspeur expressed his dissatisfaction to Défi Media Group, claiming the decision was made without prior consultation, stating that such a move “could not be taken without consultation between the Governor, the First Deputy Governor and myself.”

Governor Sithanen has acknowledged the existence of disagreements within the leadership, without elaborating further.

Another point of contention is Mr Sithanen’s dual role as both Governor of the BoM and chairman of the Financial Services Commission (FSC).

An individual close to the matter conceded that “ideally, it would have taken two different people,” but noted a concern that a lone FSC chairman could lead to a repeat of the 2018 Alvaro Sobrinho affair, which saw the FSC granting controversial banking licenses to a businessman facing money laundering investigations in Portugal.

Bank of Mauritius

Deputy Prime Minister Paul Bérenger has also commented on the situation, acknowledging that while Mr Sithanen remains the Governor of the Bank of Mauritius “until proven otherwise,” the current situation is untenable.

Mr Bérenger revealed he had discussed the matter “several times” with the Prime Minister, adding that while Mr Sithanen had “helped the country at a difficult time,” “time has passed,” suggesting that a change in leadership may be considered to restore calm.

Meanwhile, speculation surrounding the possible appointment of former Financial Services Minister Sushil Khushiram as the new BoM head has been categorically denied by his associates and within the government.

Defi Media sources indicated that despite lobbying to remove Mr Sithanen, no clear candidate has emerged to take over the role should it become vacant.

The BoM’s central role in the country’s financial stability underscores the urgency of finding a resolution, with both the Prime Minister and Deputy Prime Minister keen to find a quick solution.

Source: Defi Media