The Maldives Monetary Authority (MMA) is injecting political influence into the Maldives’ financial system with a regulatory change allowing those holding political office to be appointed to the boards of banks and other financial institutions, members of the opposition Maldivian Democratic Party (MDP) have accused.
A letter by the Maldives Financial Services Association (MFSA) to the Public Account Committee of Parliament, expressing concern over the change, was on the Committee agenda for Monday. However, when the matter was raised, members of the administration-aligned People’s National Congress (PNC) refused to take the matter forward, moving instead to refer it to the Rules Committee — the motion was forwarded by Member of Parliament (MP) for Kelaa Abdulla Shareef (PNC) and seconded by MP for Central Hithadhoo Ahmed Azaan Marzooq (PNC), with support from other PNC MPs.
Subsequently, the opposition MDP MPs on the Committee expressed dissatisfaction, resulting in a failed motion to investigate the matter.
MP for Hanimaadhoo Abdul Gafoor Moosa (MDP) stressed that the central bank and the Bank of Maldives (BML) had been largely independent up until now. “The people believe this is how it should be,” he said, going on to state that it would be dangerous for the PNC to change the long-standing principles to suit the current administration.
“It will not work if the central bank and banks are involved in the changing political current… Our mandate is to look into the MMA directly,” Moosa said.
MP for South Hulhumalé Ahmed Shamheed (MDP) expressed concern that relatively few institutions in the country are being properly run and free from political influence.
Noting that the MMA has made decisions independently so far, Shamheed said the recent rule change could lead to those at deputy minister level being appointed to the boards of banks, thus politicising the institutions. He described the action by the central bank as opening the door to the politicisation of the banking system.
“Politicising such professional institutions is a big concern,” Shamheed said, explaining that he did not understand the harm to the administration if the rules remained the same while also pointing out that changing the rules could, in fact, be detrimental to the administration.
The Public Accounts Committee should examine the issue before the people start calling for it to do so, he said.
Meanwhile, MP Marzooq, outlining that the Committee is in no way bound to act based on submissions by a non-governmental organisation (NGO), called on the Committee Chair to ignore motions by the opposition. MFSA was a stagnant association, he said.
MP Shareef, who proposed the motion for the matter to be forwarded to the Rules Committee, said his motion was in good faith and that he did not think that something that had been already decided on by the Committee should, again, be put up for discussion.
Committee Chair, MP for Maamigili Qasim Ibrahim, leader of the administration-aligned Jumhooree Party (JP), adjourned the committee even as MDP members continued to express their dissatisfaction over the matter.