PORT LOUIS (Reuters) -Mauritius’ Prime Minister Navin Ramgoolam said on Saturday he has asked Central Bank Governor Rama Sithanen to step down and will appoint a new second deputy governor on Monday and thereafter a new governor, amid signs of a power struggle at the bank.
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 was the third most senior official at the central bank and held the title of second deputy governor.
Sanspeur 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 said the accusations against his son were false.
Ramgoolam told reporters on Saturday: “It was clear that Rama Sithanen’s position had become untenable. This situation is unacceptable. In order for the Bank of Mauritius to regain its serenity, I asked the Governor to step down.”
“I do not question his competence,” he added.
Sithanen did not immediately respond to Reuters’ request for comments on his dismissal.
Ramgoolam said Sithanen has asked for a meeting with him, which he thinks is “about the conditions.”
He commended the governor for his role in improving key performance indicators at the Bank of Mauritius. Since the beginning of the year, the rupee has appreciated by around 6% against the dollar, while the annual inflation was running at 3.3% at the end of August, Ramgoolam said.
(Reporting by Jean Paul Arouff and Villen Anganan, writing by Nqobile Dludla; Editing by Hugh Lawson)
