Mauritius Central Bank Chief To Resign After Calls To Step Down

Mauritius Central Bank Governor Rama Krishna Sithanen said he will resign on the prime minister’s request, after months of internal wrangling over how the institution was being managed.

On Saturday, Prime Minister Navinchandra Ramgoolam said he had asked Sithanen to step down, stating that the governor’s position “has become untenable.” Ramgoolam said he will appoint a new central bank chief and deputy governor in the coming days.  

“In the supreme interest of the central bank, the country and for the stability and serenity of the institution, I think it’s a good thing that I withdraw myself,” Sithanen said in an interview with the state-owned Mauritius Broadcasting Corp. on Saturday. “I have agreed to resign” in the coming week, he said.

Sithanen’s departure follows that of Gerard Sanspeur, who resigned as second deputy governor in August after being accused of breach of trust and corruption — allegations he denies.

“If immediate action isn’t taken, there will be an impact not only on the functioning of the most important institution,” Ramgoolam said at a press conference on Saturday. “We are also under scrutiny from other institutions”, including credit ratings agencies, the World Bank and the International Monetary Fund, he added.

Deputy Prime Minister Paul Raymond Bérenger, who is also leader of the second-biggest party in the ruling alliance, had recently criticised Sithanen’s performance and accused him of taking on too many responsibilities.

A former two-time finance minister, including one tenure under Ramgoolam from 2005 to 2010, Sithanen began his three-year term as governor in November. Under his stewardship, the central bank has hiked interest rates by 50 basis points to quell inflation, improved foreign-currency liquidity and stabilised the currency.