MAURITIUS is grappling with one of its most explosive political scandals in years just as French President Emmanuel Macron touches down for a 24-hour visit. At the heart of the crisis is former finance minister Renganaden Padayachy, arrested last week over accusations he defrauded a state-backed investment fund.
Padayachy is alleged to have siphoned off around $8 million from the Mauritius Investment Corporation (MIC), a body set up to help businesses weather the Covid-19 pandemic. The scandal has also drawn in former central bank governor Harvesh Seegolam, with both figures now under investigation.
Once celebrated as a key player in Mauritius’s economic success story, Padayachy now stands accused of betraying public trust. His party, the Militant Socialist Movement (MSM), claims the charges are politically driven, accusing the new administration of using the judiciary to suppress opposition voices.
‘It’s a vendetta against Pravind Jugnauth,’ an associate of Padayachy told AFP, referring to the former prime minister ousted in last November’s election.
Rival dynasties fuel bitter tensions
Mauritian politics has long been shaped by two dominant families. Former prime minister Jugnauth, 63, succeeded his father in office, only to be unseated by Navin Ramgoolam, 77, himself a former two-time premier and son of the country’s first post-independence leader.
Ramgoolam wasted no time attacking the previous government, branding it a ‘mafiosi’ outfit that acted ‘as if Mauritius belonged to them’. He insists that the current corruption probes are part of a necessary purge, not revenge.
However, Ramgoolam has also faced scrutiny. In 2015, he was prosecuted for alleged money laundering and obstruction of justice—charges he says were politically motivated.
The situation escalated last year with a wiretapping scandal that exposed private conversations between senior officials, sparking concern about institutional rot. Then, in February, Jugnauth was arrested in a separate money-laundering case after documents bearing his name were found at the homes of suspects—along with luxury watches and suitcases of cash. He is currently out on bail.
‘This isn’t revenge, it’s a clean-up,’ Ramgoolam told parliament. ‘We need to clean up the republic.’
Image of economic stability under threat
The crisis is casting a shadow over Mauritius’s international reputation. Once considered a model for African stability and growth, the country was removed from the EU’s list of high-risk countries in 2022 after reforms to combat money laundering.
But recent events have shaken investor confidence. ‘What made us strong—transparency, stability, and seriousness—is melting like butter in the sun,’ a foreign investor told AFP, declining to be named due to security concerns.
Roshi Bhadain, a former financial services minister under Jugnauth who now leads his own political party, warned that Mauritius can no longer rely on its idyllic image.
‘We can no longer hide behind coconut trees,’ he told AFP. ‘Either we clean up, or we go under.’
Macron walks diplomatic tightrope
French President Emmanuel Macron arrives in Mauritius on Thursday as part of a wider regional tour, but the timing is awkward. Although he is not expected to comment publicly on the scandal, officials in Paris are keeping a close watch on the legal process—particularly as Padayachy also holds French nationality.
‘France is monitoring to ensure that procedural rights are respected,’ a French diplomat told AFP. ‘But it will be careful not to appear as interfering in the legal affairs of a sovereign state.’
As Macron wraps up his visit, the pressure remains on Mauritian leaders to prove their commitment to institutional accountability—and ensure the island’s global reputation remains intact.
