Opposition leader Fayyaz Ismail has raised alarm over the ruling People’s National Congress (PNC) efforts to oust Ali Hashim from his position as Governor of the Maldives Monetary Authority (MMA).
The main opposition Maldivian Democratic Party (MDP) Chairperson Ismail’s comments follow a decision by the PNC-controlled Public Accounts Committee of parliament to recommend Hashim’s removal to President Mohamed Muizzu. Observers speculate that this manoeuvre is part of President Muizzu’s strategy to replace Hashim with a more docile figure, which could potentially compromise the central bank’s independence.
In a post on X, Ismail expressed concern over the the parliamentary committee’s decision “during such times of economic uncertainty.”
“The unsettling of financial institutions is another sign of this govt’s [Muizzu administration’s] shortsighted decision-making,” he said, calling for a more cautious approach. In a plea to the Muizzu administration and the ruling party, Ismail urged them to “refrain from taking this dangerous course.”
This comes amidst the ongoing financial crisis, while the Muizzu administration is reportedly implementing fiscal reforms. While their efforts aim to reduce wasteful expenditure, they face criticism for allegedly appointing over 2,000 political officials.
Hashim, citing health reasons, recently declined to appear before the committee for questioning. Instead, he submitted written responses to their queries. However, the PNC lawmakers remain adamant about his removal, alleging that he failed to fulfil his responsibilities as the MMA chief.
The situation now rests with the parliament, where Hashim’s removal must be approved. Analysts suggest that Hashim’s tenure as central bank chief is coming to an end, given the PNC’s control of 75 out of 93 seats in Parliament. The opposition is also concerned that the PNC is leveraging this power for its own benefit and that of the Muizzu administration.