Pension board chair Inaz resigns over bond financing decision

The chair of the board of the Pension Administration Office, Ahmed Inaz, resigned on Sunday, citing concerns over a decision to raise funds through the Maldives Monetary Authority to finance a government bond valued at MVR 2.4 billion.

Inaz, a former finance minister with an academic background in economics, said the country’s fiscal position was weakening and that he did not believe a sustainable solution had been reached despite extensive discussions on the bond transaction.

In announcing his resignation, Inaz said he was stepping down with immediate effect, stating that financing the bond through the central bank would be detrimental to the economy under current conditions.

He said he hoped public finances would be strengthened through longer-term policy measures and that the economy would move away from high debt levels towards productive growth.

The Maldives Monetary Authority board has decided to use pension funds to invest MVR 2.4 billion in government bonds.

Earlier, Ahmed Saruvash, a board member, and Hawwa Fajwa, the chief financial officer of the Pension Administration Office, also resigned. Both said the transaction breached provisions of the Finance Act and the pension office’s internal rules.

In previous remarks on the issue, Inaz said he had been assured that the pension board and management had not acted in violation of laws, regulations, policies, or internal procedures governing the pension system.

Inaz said that ensuring the sustainability and security of the pension fund was his primary responsibility as chair of the board. He also previously served as finance minister during the administration of former president Mohamed Nasheed.