Written by Lisa Murimi
Mauritius, often hailed as a beacon of stability in the Indian Ocean, was jolted on Saturday when Prime Minister Navin Ramgoolam announced that he had asked Central Bank Governor Rama Sithanen to step down.
The move comes amid weeks of turbulence that have shaken confidence in one of the nation’s most trusted institutions.
For Ramgoolam, the decision was not taken lightly. The Bank of Mauritius is the guardian of the nation’s monetary policy, the protector of its currency, and the bedrock of financial stability.
Yet, recent revelations of alleged meddling at the highest levels created a storm that the Prime Minister said could no longer be ignored.
“It was clear that Rama Sithanen’s position had become untenable. This situation is unacceptable,” Ramgoolam told reporters, his words underscored by both urgency and disappointment.
“In order for the Bank of Mauritius to regain its serenity, I asked the Governor to step down.”
The storm began with the resignation of Deputy Governor Gerard Sanspeur on August 29.
In a startling press conference, Sanspeur accused the governor’s son of seeking to interfere in crucial bank matters from banking licenses to staff recruitment and tendering processes. His claims struck at the very heart of the central bank’s independence.
Sithanen has strongly rejected the allegations against his son, calling them unfounded. But the damage was done.
As accusations flew, the public’s faith in the bank faltered, and pressure mounted on the Prime Minister to act decisively.
While careful not to question Sithanen’s technical expertise, Ramgoolam said leadership is about more than competence. It is about trust. And in that trust, he suggested, cracks had appeared too deep to mend.
The Prime Minister announced that a new second deputy governor would be appointed on Monday, with the position of governor to be filled soon after.
“The Bank must regain calm, confidence, and credibility,” he said.
Mauritius faces a defining moment as a leadership crisis shakes its central bank. Once a symbol of political stability and institutional strength, the nation now finds investors on edge and citizens demanding answers.
