By Enyichukwu Enemanna
Following a call by Mauritius’ Prime Minister, Navin Ramgoolam, the Central Bank Governor Rama Sithanen has agreed to resign next week, amid signs of a power struggle at the apex bank.
Prime Minister, Ramgoolam earlier on Saturday told reporters that while he did not question the governor’s competence, he had asked him to resign “in order for the Bank of Mauritius to regain its serenity”.
“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 central bank governor said in a televised speech on Saturday evening.
“I have agreed to resign, and I will do so next week.”
According to the Prime Minister, “it was clear that Rama Sithanen’s position had become untenable. This situation is unacceptable.”
Ramgoolam said he would appoint a new second deputy governor on Monday and thereafter a new governor.
The Deputy central bank governor Gerard Sanspeur resigned on August 29 after clashing with the son of the governor, whom he accused of trying to meddle in the running of the institution.
Sanspeur held the title of second deputy governor. He told a press conference last month that the governor’s son “wanted to interfere in banking licences processes, in recruitment and laying off of staff and tender procedures”.
Sithanen has denied the allegations against his son were false. “One thing I can assure you is that no decision taken by the central bank was ever determined by the messages between these two persons,” he said, referring to his son and the second deputy governor.
The outgoing central bank chief said he would have a meeting with the prime minister “to have a fair hearing”.
Ramgoolam commended the governor for his role in improving key performance indicators at the Bank of Mauritius.
