Politicians on finance boards will affect investors, Fayyaz says

The opposition Maldives Democratic Party (MDP) said on Sunday that the amendment to the rules to include politicians on the boards of banks, insurance service providers and financial companies would negatively affect the confidence of domestic and foreign lenders and investors.

On the change in the corporate governance rules for banks, insurance companies and financial companies, MDP chairperson Fayyaz Ismail said in an X post that so far no government has done such a thing, in order to preserve the integrity of the financial system.

The rules were amended and gazetted by the Central Bank, MMA on Sunday. With effect from the date of gazettement of the amendment, political office bearers other than cabinet ministers, heads of independent institutions and senior political party officials can be appointed to the boards of banks, insurance companies and financial services companies.

Fayyaz said things should be done with transparency to build a healthy economy. It is critical that the government has the ability to listen to the criticism that comes from such disclosure, he said.

"This government is setting the financial system back several years. It is heading towards establishing a secretive state by refusing to disclose state accounts and financial reports," Fayyaz said in his post.

Previously, the following rules did not allow the politicians to sit on the boards of banks:

The Privatization and Corporatization Board (PCB) said it would not be a problem to amend the rules to allow policy level personnel to be appointed to government companies as government-owned companies provide vital services to the people for strategic decisions and other basic needs A letter has also been circulated.