Introduction to the Crisis
The Central Bank of Mauritius is facing a power struggle, leading to the resignation of its governor, Rama Sithanen. This decision comes after a call from Mauritius’ Prime Minister, Navin Ramgoolam, who requested the governor’s resignation to restore serenity to the institution.
The Reason Behind the Resignation
Prime Minister Ramgoolam stated that he did not question the governor’s competence but believed that his resignation was necessary for the bank’s stability. The governor, in a televised speech, agreed to resign, citing the best interest of the central bank and the country. He stated, "I believe that, in the best interest of the central bank, in the best interest of the country, and for the stability and serenity of the institution, it is the right thing for me to step down."
The Power Struggle
The crisis began when the Deputy Central Bank Governor, Gerard Sanspeur, resigned on August 29, accusing the governor’s son of attempting to meddle in the bank’s operations. Sanspeur alleged that the governor’s son wanted to interfere in banking licenses, recruitment, and tender procedures. The governor denied these allegations, stating that no decision was ever influenced by his son’s actions.
Aftermath and Next Steps
Prime Minister Ramgoolam announced that he would appoint a new second deputy governor on Monday and subsequently a new governor. The outgoing governor, Rama Sithanen, will meet with the prime minister to discuss the situation. Despite the controversy, Ramgoolam commended Sithanen for improving key performance indicators at the Bank of Mauritius.
Conclusion
The resignation of the Central Bank Governor, Rama Sithanen, marks the end of a power struggle within the institution. The decision aims to restore stability and serenity to the bank, ensuring its continued effectiveness in managing the country’s economy. As Mauritius moves forward, the appointment of a new governor and second deputy governor will be crucial in maintaining the bank’s integrity and performance.
