Pravind Jugnauth, who lost his reelection bid last November, stands accused of financial crimes by the new government

Former Mauritius Prime Minister Pravind Jugnauth has been arrested on charges of money laundering, the East African island country's Financial Crimes Commission (FCC) announced on Sunday.

The detention came a day after the FCC said its officers were conducting searches at Jugnauth's home and several other locations. Investigators discovered and seized 114 million Mauritius rupees ($2.4 million) after inspecting various locations, including the former official's residence, Reuters reported, citing the FCC.

"Mr. Pravind Jugnauth, former Prime Minister, has been arrested under a charge of money laundering. He will be detained at Moka Detention Centre," the state-owned agency said in a statement on Sunday.

Jugnauth denies the charges, his lawyer, Raouf Gulbul, told reporters early Sunday. In an interview with Bloomberg on Monday, Gulbul said the ex-prime minister was released Sunday night after hours of detention.

"Today he will furnish the bonds set by the court," the attorney stated.

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Jugnauth had been the premier of the Indian Ocean archipelago from 2017 until losing a reelection bid for a second five-year term to the opposition in November. His administration was widely accused of corruption after recordings of politicians and business owners were leaked online days before the election.

Since taking office, the African nation's new prime minister, Navin Ramgoolam, has been critical of the previous government's handling of the economy. In November, Ramgoolam ordered an audit of the finance ministry, accusing it of providing "wrong" data to "convey a false sense of economic progress."

Last month, the former governor of the Bank of Mauritius, Harvesh Seegolam, was detained and charged with conspiracy to defraud. He was eventually released on bail after the case was filed in court.

In December, Ramgoolam criticized the central bank for printing money to fund the Mauritius Investment Corporation (MIC), which the previous administration established in 2020 to support businesses dealing with the effects of the COVID-19 pandemic.

In a report to parliament, the prime minister described the move as "an irresponsible act," claiming that it had "deleterious effects on the monetary system, more so that the banking system was already flush with excess liquidity."