The Public Accounts Committee, on Wednesday, approved the motion, to recommend to President Mohamed Muizzu that the Governor of the Maldives Monetary Authority (MMA), Ali Hashim, be removed from office. Hashim had, over the past three days, failed to appear before the Committee in person on account of illness; opting to submit written replies.
The motion to advise the President to remove Hashim as the chief of the nation’s central bank was first introduced by Committee member, Deputy Speaker and Member of Parliament (MP) for Dhiggaru, Ahmed Nazim. The motion was seconded by MP for North Fuvahmulah, Hamad Abdulla and was passed unanimously by the eight members present.
While the Maldives Monetary Authority Act (1981) does allow for the legislature to recommend that the President remove the Governor, the final decision will be determined based on the outcome of a floor vote.
Hashim, who going on three days has recused himself from appearing citing illness, had responded to the Committee in writing. He had, in his latest written statement reviewed on Wednesday, again requested that additional queries, should they exist, we sent to him in writing.
However, Committee members said they would have presented the Governor with further questions were he present at the hearings, adding that there were additional matters the members required clarification on pertaining to information shared by state agencies in parliamentary committees.
“It could turn out to be, from a national perspective, quite bad to look on at the Governor without doing anything. I think it should be decided today to recommend the President remove the Governor,” the Deputy Speaker said.
Committee Chair, and MP for Maamigili, Qasim Ibrahim, sought Member opinions as to grant the governor the opportunity to answer further questions in writing — the Members unanimously adopted a position on not providing any further opportunity.
According to the Deputy Speaker, the Ministry of Finance, in a letter to Parliament, had detailed that the MMA had not given proactive advice to the administration since 13 November 2023.
Nazim, in recommending Hashim’s removal said that, under Hashim’s watch, the nation’s economy had deteriorated to a level where it would be difficult to recover.
Elaborating on his position the Deputy Speaker said that, under the Governor’s watch, banks and financial institutions were encourage to withhold indirect lending to the public while also urging the banks to maintain their reserves at the MMA. Nazim added that, while the administration is currently looking towards funding from the domestic market, the central bank had failed to properly regulate the domestic market at this critical juncture. He also went on to state that the agency’s regulations were out of step with the times.
Hashim, in his written submissions, defended his position saying the MMA had shared with the administration the importance of providing information and guidance, and taking necessary measures, in order to circumvent disaster.
Noting that the information has also been shared with the Public Accounts Committee, Hashim added that the root cause of the fears about the economic future is the administration’s failure to listen to the guidance and advice from the MMA and international financial institutions.
“The main reason for the high risk of a catastrophe is that the authorities have not heeded the guidance and advice of this authority, and international financial institutions, and have not adopted the fiscal discipline we have long advocated,” Hashim said.
Hashim, in his written submission to the Committee, continued on to refute other reasons proposed for his removal; denying, among others, that the central bank had pressured banks and financial institutions, had failed to properly regulate the domestic market, and was out of step with the times.
Hashim’s defence detailed that he had thus far worked to fulfil his responsibilities under the law, going on to assure the Committee that they had the full cooperation of the MMA, and himself, to overcome the situation.