Former Mauritian Finance Minister Renganaden Padayachy has been released on bail after being held in custody for five days as part of a fraud investigation conducted by the Financial Crimes Commission (FCC), according to Bloomberg.
Padayachy’s arrest last week, along with that of ex-central bank governor Harvesh Seegolam, stemmed from allegations of “fraud by abuse of position.” The charges relate to the acquisition of shares by Mauritius Investment Corp. (MIC), a subsidiary of the central bank.
The FCC alleges that MIC purchased shares in Eastcoast Hotel Investment Ltd. for 48 million euros (2.4 billion rupees), exceeding the recommended price of 2.1 billion rupees. This resulted in an alleged gain of 300 million rupees for Eastcoast Hotel Investment Ltd.
Padayachy secured bail on Monday. His lawyer, Raouf Gulbul, confirmed the release by phone and stated that Padayachy denies any involvement in any wrongdoing. Seegolam was granted bail last Thursday.
Padayachy’s arrest marks the third member of the former government to be apprehended by Mauritian authorities, following the earlier arrests of ex-Premier Pravind Kumar Jugnauth and Attorney General Maneesh Gobin.
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