Inaz denies any illegal decision on bond investment

The Chairman of the Maldives Pension Administration Office, Dr Ahmed Inaz, has said the board has not taken any illegal decision and will ensure the safety of the pension fund.

His statement came on Monday following the resignations of a board member and the organisation’s Chief Financial Officer.

The board has decided to use proceeds from the sale of existing bonds to the Maldives Monetary Authority (MMA) to invest MVR 2.4 billion in government bonds.

Board member Ahmed Saruvash resigned after the decision, stating that the transaction violated the Finance Act and internal rules of the Pension Office. Hawwa Fajuwa also resigned from her position as Chief Financial Officer.

Inaz wrote on X on Monday that he assured the public that the board and management had not acted in violation of laws, regulations, policies, or internal rules governing the Pension Office. He said his main responsibility as chairman was to maintain the sustainability and safety of the pension fund. Inaz previously served as Finance Minister in the administration of former President Mohamed Nasheed.

The Ministry of Finance has offered the Pension Fund the option to invest in a new Treasury bill worth MVR 2.5 billion. Under the proposal, the pension fund would invest the proceeds from the sale of older Treasury bills to the MMA into the new government securities.

Some economists have said the move may result in the creation of new money or the withdrawal of funds from the MMA that are not currently in circulation.