Falah says Yameen’s call to defy forex law amounts to incitement

PNC Parliamentary Group Leader Ibrahim Falah on Friday criticised former President Abdulla Yameen for calling on resort operators to resist the requirement to convert 40 per cent of their foreign currency revenue through local banks, saying urging people to violate the law amounted to incitement.

Falah, who represents the Inguraidhoo constituency, made the remarks in a social media post responding to comments made by Yameen at a People’s National Front (PNF) town hall meeting in Fuvahmulah on Thursday night.

At the meeting, Yameen called on individual resort operators to oppose the 40 per cent conversion requirement, arguing that the measure would affect their ability to meet expenses denominated in foreign currency. He said resorts should not leave opposition to the policy solely to the Maldives Association of Tourism Industry (MATI).

Responding to the remarks, Falah accused Yameen of encouraging businesses to disregard a law passed by Parliament. He also accused the former president of acting out of political and personal interests.

Falah further alleged that Yameen had taken millions of dollars belonging to the state during his presidency and claimed that recovering the funds would help address the country's foreign currency shortage.

“If the state recovers the millions of dollars stolen by Yameen, the dollar crisis will be resolved immediately,” Falah wrote.

Falah also accused Yameen of working with the opposition Maldivian Democratic Party (MDP) against President Mohamed Muizzu's administration.

“Yameen’s recent efforts in collusion with MDP to bring down the government demonstrate how far his words diverge from his actions,” Falah said.

He also criticised the fact that Yameen remains out of prison while legal proceedings against him continue.

Yameen was sentenced to 11 years in prison by the Criminal Court on 25 December 2022 after being convicted of money laundering and bribery in a case concerning the lease of Aarah. He was transferred from prison to house arrest after Muizzu won the 2023 presidential election.

The High Court later overturned Yameen's conviction and ordered a retrial, meaning the previous 11-year sentence is no longer in force. Proceedings in the case remain ongoing.

Falah's comments on the recovery of state assets come as the government pursues legislation to establish a framework for confiscating proceeds of crime.

President Muizzu recently announced plans for the legislation, which has since been submitted to and accepted by Parliament. The bill includes provisions for the state to seek forfeiture of assets through civil proceedings in certain circumstances, including where criminal prosecution cannot be completed.

The dispute between Falah and Yameen comes after Parliament passed amendments to the Foreign Exchange Act requiring resorts to convert 40 per cent of their monthly foreign currency revenue through the banking system.

The requirement has drawn opposition from tourism industry groups and employees, who have raised concerns over the amount of foreign currency resorts require for salaries, supplies, debt repayments and other expenses.

The government is also pursuing measures aimed at increasing the use of the Maldivian rufiyaa in domestic transactions. The Maldives Monetary Authority has said its longer-term objective is to phase out foreign currency salary payments and the use of foreign currencies for domestic transactions by 2030.