Mauritius’s former finance minister Renganaden Padayachy was rearrested Wednesday over a second fraud case linked to the Mauritius Investment Corporation (MIC), just two days after securing bail in a separate embezzlement investigation. The latest arrest centers on alleged fraudulent payments of approximately $1 million from the MIC—a pandemic-era fund established by the Bank of Mauritius—to Menlo Parks Ltd/Pulse Analytics, a polling firm known for political analyses on social media.
Case Timeline and Allegations
Padayachy and former central bank governor Harvesh Seegolam were initially arrested April 9 over accusations of inflating the valuation of EastCoast Hotel Investment, a company in which MIC invested, causing losses of $6.7 million. Padayachy secured bail April 14 after five days in custody but now faces a new charge tied to MIC’s irregular fund allocations. Authorities searched two of his properties Wednesday as part of the fresh probe.
Broader Implications
The MIC scandals have exposed systemic governance flaws in one of Africa’s most stable democracies. Prime Minister Navin Ramgoolam’s administration, elected in November 2024, has prioritized auditing public finances inherited from the previous government, which it accuses of manipulating economic data. With Padayachy and Seegolam denying wrongdoing, the cases underscore mounting pressure on institutions to address post-pandemic recovery fund mismanagement.
Legal Proceedings
Seegolam, separately charged in the Menlo Parks case in January, was released earlier. Padayachy’s bail terms for the initial charge included a $13,000 bond, but the new arrest complicates his legal battle as investigators pursue multiple MIC-related fraud threads
