Former President Ibrahim Mohamed Solih issued a warning on Wednesday, urging against actions that might undermine confidence in the Bank of Maldives (BML). In a post on X, formerly known as Twitter, he emphasised the bank’s pivotal role in the lives of many people and businesses, asserting that it is crucial for the government to avoid actions that could erode trust in the institution. “If trust in BML is lost, it will be a great loss for the entire society. It is the people’s bank,” Solih stated.
Solih’s remarks follow recent developments surrounding BML, which have raised concerns among financial experts and former executives about increased governmental influence. There are growing fears that the bank is now being run directly from the President’s office, leading to a rapid erosion of confidence.
The situation at BML has been turbulent in recent months. The government has nominated Ahmed Ali Habeeb, Principal Secretary to the President on Cabinet Affairs, as the next chairman of the bank. His appointment is set to be finalised at a board meeting on Saturday, following an Extraordinary General Meeting (EGM). Habeeb’s nomination comes after a series of high-profile changes at the bank, including the dismissal of senior executives and the resignation of key figures.
In August, Aishath Noordeen, the bank’s Deputy CEO, was removed from the board of directors after 42 years of service. The Privatisation and Corporatisation Board (PCB), which oversees state-owned companies, communicated Noordeen’s dismissal via letter, though the reason behind the decision remains undisclosed. BML’s charter mandates that board members can only be removed through a general meeting of shareholders.
Earlier this year, in January, the PCB dismissed five BML directors, leading to legal concerns. These dismissals were later rescinded, and the directors were reappointed before being officially removed through a shareholders’ meeting.
The recent upheaval also includes the resignation of Managing Director and CEO Karl Stumke, who stepped down amid allegations that BML’s decisions were linked to an attempted coup against the government. His resignation was announced on the bank’s website on 8 September, with Stumke set to remain CEO until a special annual general meeting on 21 September.
Stumke’s departure followed BML’s controversial decision to suspend foreign transaction allowances on Maldivian Rufiyaa (MVR)-linked debit and credit cards. This move, swiftly reversed after pressure from the Maldives Monetary Authority (MMA), led to public outcry and accusations from senior government figures, including President Dr Mohamed Muizzu, who suggested BML was involved in a plot orchestrated by the opposition. Opposition leaders have dismissed these allegations as an attempt to divert attention from broader economic issues.
As BML’s Board of Directors begins the process of selecting a new CEO, the appointment of Habeeb as chairman is expected to be a significant step in addressing the current leadership vacuum and stabilising the bank’s operations.