Ex-Bank Chiefs Share Indemnity Pot of Over Rs 6 Million After ‘Conflict’ Resignations

Former Bank of Mauritius (BoM) Governor Rama Sithanen is set to receive an indemnity payment of Rs 5.5 million, while former Second Deputy Governor Gérard Sanspeur will receive Rs 512,000, following their recent resignations.

The payments were revealed by Prime Minister Dr Navin Ramgoolam in Parliament today, Tuesday, October 7, at the resumption of parliamentary work after a two-month recess.

The Prime Minister confirmed the amounts were in line with the terms and conditions of their employment contracts.

Political Turbulence and ‘Clean-Up’ Agenda

The matter was brought to the floor of the National Assembly as a Private Notice Question (PNQ), tabled by Leader of the Opposition Joe Lesjongard and addressed directly to the Prime Minister.

Dr Ramgoolam disclosed that he requested the resignations of Mr. Sithanen and Mr. Sanspeur, stating that “the situation of permanent conflict could not continue in the interest of the banking and financial sector.”

The Prime Minister framed the forced departures as part of his administration’s priority to “clean up the mess” left by the previous regime, citing the Mauritius Investment Corporation (MIC) saga and other “accumulated errors.”

Sithanen’s Financial Services Role Also Ended

In addition to his BoM role, Dr Ramgoolam noted that Mr. Sithanen also resigned as Chairman of the Financial Services Commission (FSC).

This resignation was attributed to his appointment to the FSC post being linked to his former function as Governor of the Bank of Mauritius.

Despite the turbulence, the Prime Minister was careful to stress that the decision to seek Mr. Sithanen’s resignation “does not call into question his professional skills.”

New Appointments and Stabilisation Claims

Dr Ramgoolam confirmed that a new Governor and a new Second Deputy Governor have been appointed at the BoM to “ensure the continuity and good governance of the institution.”

He also confirmed the designation of Désiré Vencatachellum as the new Chief Executive of the FSC.

The Prime Minister concluded his remarks by asserting that the financial situation had now stabilised, citing a rise in foreign exchange reserves from $8.4 billion to $9.6 billion.

Source: Defi Media