Central Bank Sues Ex-Minister Padayachy after Malicious Rs 83 Billion Allegations

The Bank of Mauritius has lodged an official complaint with the Central CID against former Finance Minister Renganaden Padayachy. The legal action, taken on 16 May, follows allegations made by Mr Padayachy that the central bank had printed Rs 83 billion.

‘False, Unfounded and Malicious’

The matter was raised in the National Assembly on Tuesday, 26 May, during Prime Minister’s Question Time.

Prime Minister Navin Ramgoolam strongly rejected the former minister’s claims, branding them as “false, unfounded and malicious”.

Mr Ramgoolam counter-claimed that under the previous administration, the Bank of Mauritius had actually printed a total of Rs 181.5 billion.

Diversion of Funds Alleged

The Prime Minister further criticised the Mauritius Investment Corporation. He stated that while the corporation was initially established to support systemic companies, it had instead been used as a vehicle to channel funds to close associates and beneficiaries of the former Finance Minister.

“This financial monstrosity has weakened the balance sheet of the central bank,” Mr Ramgoolam concluded.

The Catalyst for the Dispute

The controversy began with a video published by Mr Padayachy on his Facebook page on 11 May.

In the footage, the former minister discussed a Rs 55 billion transfer from the Bank of Mauritius to the State in 2020, which he justified as a response to the health and economic crises caused by Covid-19.

Mr Padayachy used the video to question the current government’s economic direction, asking why Rs 83 billion had reportedly been injected into the economy in 2025 if the 2020 transfer had truly caused negative effects.

Central Bank Rebuttal

The Bank of Mauritius moved swiftly to deny the claims, issuing a clarification on 12 May, the day after the video was posted.

The institution stated categorically that no monetary issuance or transfer of funds to the government had taken place in 2025.

Source: Defi Media