Public Sector

Maldives Parliament moves to dismiss Governor of MMA amid debt crisis

This approval followed a motion by the Vice-Speaker of Parliament, Dhiggaru MP Ahmed Nazim, who initially moved the matter earlier this month.

DhiDaily

DhiDaily

As the Maldives continues to grapple with its worsening debt situation, exacerbated since the COVID-19 pandemic, significant measures are being taken to address the issue. The Public Accounts Committee (PAC) recently advised President Dr Mohamed Muizzu to dismiss the Governor of the Maldives Monetary Authority (MMA), Ali Hashim, as part of broader efforts to improve debt management.

On July 17, 2024, the Finance Committee of the Parliament approved the recommendation to remove Governor Hashim from his post. This approval followed a motion by the Vice-Speaker of Parliament, Dhiggaru MP Ahmed Nazim, who initially moved the matter earlier this month. Nazim's motion was based on concerns that Governor Hashim was not fulfilling his responsibilities effectively.

Despite being asked to appear before the committee to address these concerns, Governor Hashim cited illness and did not attend the hearings for three consecutive days. Instead, he sent a letter to the Finance Committee requesting an opportunity to respond in writing.

The Vice-Speaker Ahmed Nazim outlined several reasons for recommending the Governor's removal:

  • The Governor urged banks and financial institutions in the Maldives to withhold indirect lending to the public and keep their reserves with the MMA. As a result, there has been less money in circulation, which has led to a slowdown in economic activities.
  • The Governor failed to act effectively at a time when the government began earning revenue from the Maldivian market.
  • The Home Ministry and the police informed the Parliamentary Security Services Committee that MMA had not complied with the rules to prevent crime to this day. 
  • Since the current government took office, the Governor has not made any practical efforts to advise the government on achieving the main objectives of the MMA Act in the past seven months since November.

These criticisms reflect the PAC and Finance Committee's belief that a change in leadership at the MMA is necessary to address the Maldives' economic challenges effectively. The Finance Committee's approval to recommend Governor Hashim's removal underscores the urgency of improving the management of the country's debt situation.

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