The former prime minister of Mauritius has been arrested for money laundering

A spokesman for the Financial Crimes Commission said on Sunday (Feb 16) that prior to Jugnauth's arrest, law enforcement officers searched several locations, including Jugnauth's home, resulting in the seizure of 114 million Mauritian rupees (S $3.21 million) in cash.

Jugnauth's lawyer told reporters on the same day that Jugnauth has been accused of alleged money laundering crimes, but he denies the charges.

In November, Mauritius's new prime minister, Ramgoolam, announced an audit of state finances days after questioning the accuracy of some government data compiled by the previous administration. The former head of the central bank of Mauritius was detained last month and later released on bail on charges of conspiracy to defraud.

Mauritius is an Indian Ocean archipelago with a population of about 1.3 million and its main sources of income are offshore finance, tourism and textiles.

Mauritius has enjoyed stability and prosperity since its independence from the United Kingdom in 1968. During his tenure as prime minister from 2017 to 2024, the Jugnauth government reached a historic agreement with the United Kingdom to give Mauritius back sovereignty over the Chagos Islands.

But Jugnauth and his radical Socialist movement were defeated in November elections and had to cede power to his centre-left rival Ramgoolam, who is serving his third term as prime minister.

Ramgoolam resumed negotiations on the Chagos Islands after taking office. The Ramgoolam government is reportedly seeking greater financial compensation and a renegotiation of the proposed lease for the joint Anglo-American military base. Under the agreement, Britain will retain the lease on the Diego Garcia air base. It is reported that the UK paid the Mauritius government 2 billion pounds (about S $3.4 billion) for the use of the base in exchange for the return of sovereignty over the Chagos Islands to the Mauritius side.

Diego Garcia Island base is currently leased by the United Kingdom to the United States, becoming one of its major military facilities in the Asia-Pacific region.