Economic woes linked to ignored advice, governor tells parliament

Maldives Monetary Authority (MMA) Governor Ali Hashim said on Monday that the government has always been advised on the then situation to avoid an economic disaster and the current situation is because the authorities did not pay attention to the advice and guidance given by the central bank and international financial institutions.

The central bank governor Ali Hashim did not turn up for the meeting scheduled by the Public Accounts Committee on Monday on the issue of consulting the president to remove him from the post, accusing him of failing to perform his duties.

The governor gave prior notice for his absence, citing health matters and sent written replies to the allegations made against him.

On the allegation that the governor had not fulfilled his responsibilities as the head of the MMA, the governor said he and the authority both believed that the MMA had provided the information, guidance and assistance required to save the country from financial crisis.

The governor said the MMA has been working to ensure that the country does not fall into an economic abyss in the event of a crisis by dealing with the challenges facing the economy wisely.

“Over the past two years alone, the discussions in the Public Accounts Committee of the parliament will show that this authority has shared with the government and other stakeholders the need to take necessary measures to safeguard the economy,” the governor said in his written response.

"Therefore, I and the authority believe that the current economic situation and the threat of an economic crisis are mainly due to the authorities' lack of attention to the guidance and advice of the MMA and international financial institutions and the fiscal discipline we have long advocated."

He said the entire state should work together to overcome the current situation in Maldives and assured his and the MMA’s full cooperation.

The governor also denied allegations that he was not advising the current government in the period since it came to power and that was not working with the government to achieve the core objectives of the MMA.

Denying the allegations, the governor shared details of some of the work being done by the MMA during this period and in the past.

Some of the things he mentioned were:

In addition, the governor’s written statement mentions that the authority has been sharing information with the government on a regular basis in the past, without interruption.

“The data series published by the MMA was increased from 700 to over 4,600 on the MMA's various dissemination platforms from 2020 onwards to make the statistics needed by the public and government agencies as transparent as possible," the governor wrote.

According to the MMA Act, the governor is removed from office by the president in consultation with parliament. According to the rules of the parliament, the committee that will hold the MMA governor accountable is the parliament’s Public Accounts Committee.

Deputy speaker of the parliament, Dhiggaru MP Ahmed Nazim accused Ali Hashim of not discharging his duties as governor. This was part of the debate on the state's fiscal responsibility bill.

“Monetary policy is a responsibility entrusted to the governor of the central bank of Maldives. We do not see the Governor fulfilling that responsibility,” Nazim told the parliament on July 1.

In his case: