Opposition leader and former economic minister Fayyaz Ismail has criticised the government for what he describes as “undue influence” over the Bank of Maldives (BML), following the removal of Deputy CEO Aishath Noordeen from the bank’s board of directors. In a post on X, formerly known as Twitter, Ismail called for the government to cease its interference, warning that such actions undermine the integrity of the financial system.
“BML being a systemic bank and an important part of the economy, it is important that the bank is able to operate independently,” Ismail stated. He expressed concern over the decision to remove Noordeen, a veteran banker with 42 years of service, especially as the country faces an impending economic crisis. “This will surely create a negative perception towards our financial system amongst the international community,” he added, suggesting that the decision could jeopardise the Maldives’ relationship with its sole correspondent bank.
Analysts have echoed Ismail’s concerns, arguing that the removal of Noordeen at a critical juncture undermines professionalism within the banking sector and could erode investor trust. “As she is the most experienced person on the national bank’s board, removing her is very alarming,” one analyst noted.
Noordeen’s dismissal was communicated in a letter from the Privatisation and Corporatisation Board (PCB) on Saturday. The board, which oversees government companies, did not provide a reason for the decision. According to BML’s charter, board members can only be removed through a general meeting of shareholders, raising further questions about the legality of the PCB’s actions.
Earlier this year, the PCB similarly dismissed five BML directors, a move that led to legal concerns regarding the legitimacy of such actions. The PCB subsequently rescinded the notice and reappointed the directors, who were later removed through a shareholder meeting.