Pension Office CEO resigns over MVR 2.4bn bond investment
The Pension Office board had decided to sell MVR 2.4 billion worth of bonds held by the pension fund to the MMA and use the proceeds to invest in new bonds.
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Chief Executive Officer of the Pension Office, Sujatha Haleem, resigned on Wednesday following disagreement over the Pension Office’s investment in a government bond valued at MVR 2.4 billion, funded through the Maldives Monetary Authority (MMA).
Sources confirmed that Sujatha submitted her resignation after objecting to the transaction. The Pension Office board had decided to sell MVR 2.4 billion worth of bonds held by the pension fund to the MMA and use the proceeds to invest in new government bonds.
Her resignation follows earlier departures from the board. Board chair Ahmed Inaz and board member Saruvash Adam have also resigned. Chief Financial Officer Hawwa Fajwa previously stepped down, citing concerns that the transaction contravened the Finance Act and internal regulations of the Pension Office.
On Monday, the existing board approved the use of pension fund resources in line with the government’s proposal.
Sujatha was appointed as Chief Executive Officer on 31 October 2022, having previously served as acting CEO.
In a statement issued on Tuesday amid public concern over the proposal, the Pension Office said the Ministry of Finance had proposed investing MVR 2.4 billion in a dual-currency treasury bond designed to generate returns in Maldivian rufiyaa and United States dollars.
According to the Pension Office, the transaction would allow the pension fund to hold foreign currency exposure without purchasing foreign exchange from the market. The statement also said the proposal would enable the conversion of some existing Treasury bills into longer-term bonds, extending the average duration of the investment portfolio and increasing yields.
