The chairperson of the Pension Administration Office (MPAO), Ahmed Inaz, has resigned, citing concerns over a government plan he described as illegal money creation involving the pension fund.
Inaz said on X on Sunday that the government’s attempt to raise funds through a MVR 2.4 billion bond was a detrimental decision for the economy.
“I have resigned as chairperson of the board of the Pension Administration Office because, as I technically believe, raising funds for this transaction through the MMA is detrimental to the economy,” Inaz said. He previously served as finance minister under President Mohamed Nasheed.
Inaz is the third board member to resign over the issue, which critics have described as money printing. Earlier, board members Ashraf Rasheed and Ahmed Sarvash Adam also stepped down.
Meanwhile, the MPAO’s chief finance officer, Hawa Fajwa, has also resigned after refusing to sign documents related to the transaction.
Inaz said he attempted to resolve the matter through discussions, but no agreement was reached.
“At a time when the state’s financial situation is deteriorating to a worrying level, I am not convinced that the proposed MVR 2.4 billion bond issue, despite multiple negotiations, has led to a sustainable solution,” he said.
The plan involves the pension fund investing in a bond linked to the Maldives Monetary Authority (MMA), with funds then used to meet government financing needs. Critics argue this structure amounts to indirect money creation using pension savings.