This amendment, which was published by the central bank of the Maldives, Maldives Monetary Authority now indicates that the positions can be filled with people who are not leaders of a political party or a senior official at a state institution.
Corporate Maldives
The term "political appointees" has gained significant attention among Maldivians, especially since the beginning of the current administration. A political appointee is an individual appointed to a government office to ensure that the actions and decisions within that office align with the administration's political agenda and campaign promises. These appointees are selected directly by the President, meaning their tenure typically ends with the conclusion of the administration’s term, usually every five years. This process reflects the inherently political nature of these positions, which exist to implement and uphold the government’s agenda.
As successive governments have continued to expand the number of political appointments, the relevance and necessity of these positions have increasingly come under scrutiny from citizens. The public has begun to question whether such roles are essential or if they merely serve to bloat the government with loyalists at the expense of efficiency and effectiveness. Although the current administration initially pledged to keep the number of political appointees in check, recent discussions suggest a different reality. Concerns have surfaced regarding a noticeable rise in the number of political hires, extending beyond traditional government offices into new domains.
A notable example is the recent amendment to the Corporate Governance Regulation for banks and financial institutions, which now permits political appointees to serve on their boards. This development has sparked further debate, as many view it as an overreach of political influence into sectors that should ideally operate with greater independence and impartiality. This amendment, which was published by the central bank of the Maldives, Maldives Monetary Authority now indicates that the positions can be filled with people who are not leaders of a political party or a senior official at a state institution.
This is a major change to the Corporate Governance Regulation as the regulation previously did not allow political appointees of the President to serve on the boards of financial institution.
The amendment to the Corporate Governance Regulation, allowing political appointees to serve on the boards of banks and financial institutions, could have significant implications for the financial sector in the Maldives. Critics could argue that this move could undermine the independence and objectivity of financial institutions, potentially leading to decisions that prioritize political interests over sound financial management. The presence of political appointees on these boards may also erode public trust in the financial sector, as citizens may perceive these institutions as being overly influenced by government agendas rather than focused on their fiduciary responsibilities.
