MPs allege politicised MMA; warns over fiscal system errors

Members of the opposition Maldives Democratic Party (MDP) on Monday accused the central bank, Maldives Monetary Authority (MMA), of injecting political influence into Maldives' financial system under a law amendment that allows political employees to be appointed to the boards of banks and other financial institutions.

The Maldives Financial Services Association has sent a letter to the Public Accounts Committee expressing concern over the change. The letter was put on the agenda for Monday.

When the matter began in the committee, members belonging to the ruling PNC refused to take the matter forward and moved to refer the matter to the Regulation Review Committee. Thus:

MDP MP Abdul Ghafoor Moosa said the central bank and BML have been making decisions independently till now. So far, the people have been believing that this is how things are done, he said.

However, he described it as dangerous for the PNC to change the long-standing principles to suit the present-government.

“The day will come when we will have to take responsibility for these things... it will not work if the central bank and banks are swept away by changing political tides,” Ghafoor said.

"Our mandate is to look directly after the MMA. We’re hearing about four or five directors being appointed and things like that. What is going to happen? This committee should look into these things”.

Hulhumale South Constituency Member Dr Ahmed Shamheed expressed concern that relatively few places in Maldives are running properly free from political influence.

Noting that the MMA has made decisions independently so far, Shamheed said the recent changes in the rules could lead to deputy ministers-level people going to the boards of banks and politicising them. He described this as a door opened by the MMA to politicise the banking system.

"This is a very good decision. Politicising such professional institutions is a big concern," Shamheed said.

He said he did not understand the harm to the government if the rules remained the same. However, he noted that changing the rules would be detrimental to the government.

"There is no harm to the government if it remains as it is. It can continue with professionals. The government can anyway choose four people for the bank board," Shamheed said.

Shamheed said the Public Accounts Committee should study the issue even before anybody asked for it.

When the MDP members started talking about it, MP Azaan asked the presidency not to allow the opposition members to express their views.

Azaan said the Public Accounts Committee does not have to look into every report made by NGOs. He also said that the Maldives Financial Services Association is not an operating association and is there just to issue a letter when something happens.

Member Shareef, who moved the matter to the Regulatory Committee, said he had not made the motion in bad faith. He said he did not think that something should be allowed to be discussed and conflicted after a certain decision was made regarding the matter.

The Public Accounts Committee chairman, Maamigili Constituency Member Gasim Ibrahim, adjourned the committee after MDP members started making noise in dissatisfaction.