Bank of Mauritius Crisis: Prime Minister Navin Ramgoolam Intervenes, Deputy Governor Gérard Sanspeur to Resign

Prime Minister Steps In to Resolve Bank of Mauritius Crisis; Deputy Governor to Resign

Port Louis, Mauritius — Prime Minister Navin Ramgoolam has intervened to quell rising tensions at the Bank of Mauritius (BoM), reportedly requesting that Second Deputy Governor Gérard Sanspeur step down from his position. Sanspeur is scheduled to formally leave office on Friday, August 29, and is expected to address the media at 3:00 p.m. at the Labourdonnais.

The decision comes after weeks of public conflict between BoM Governor Rama Sithanen and Sanspeur, fueled in large part by disputes over the Mauritius Investment Corporation. The corporation has granted loans totaling several hundred million rupees to entities allegedly linked to the previous government, creating a deadlock within the central bank.

Tensions escalated further following the suspension of Chidanand Rughoobar, president of the BoM Employees Union, who is currently under police investigation for alleged “rogue and vagabond behavior.” Sanspeur openly criticized the suspension earlier this week, noting that he had not been consulted prior to the decision.

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Adding to the controversy is Governor Sithanen’s dual role as BoM Governor and Chairman of the Financial Services Commission, which has raised questions about governance and institutional oversight. On Tuesday, Prime Minister Ramgoolam described the situation as “unacceptable” and underscored his commitment to restoring stability at the central bank.

The resignation of Sanspeur is widely seen as a move to defuse the crisis and signal a reset in BoM’s leadership, with observers noting that restoring confidence in the institution is crucial for the country’s financial sector.