Authorities in Mauritius arrested the former finance minister and central bank governor on Wednesday as part of an investigation into embezzlement at a state company, the Indian Ocean island nation's financial crimes commission said.

Former central bank governor Harvesh Seegolam and former finance minister Renganaden Padayachy have denied wrongdoing and did not respond to requests for comment on Wednesday.

The government of Prime Minister Navin Ramgoolam has accused the previous administration, under which the two former officials served, of falsifying economic growth, budget deficit and public debt figures for years.

In one of his first moves following his November election victory, Ramgoolam launched an audit of public finances.

"Renganaden Padayachy and ... Harvesh Seegolam have been arrested this afternoon following new evidence brought into the enquiry of alleged embezzlement of 300 million Mauritius rupees ($6.70 million)," the financial crimes commission said.

The embezzlement investigation relates to the alleged theft of funds from the Mauritius Investment Corporation, set up to help companies deal with impact of the COVID-19 pandemic.