Govt backed SDF bill re-introduced to parliament
The purpose of the bill is to give legal authority to the SDF.
By
Mohamed Muzayyin Nazim
The government on Wednesday re-introduced the Sovereign Development Fund (SDF) Bill, which was rejected by the 19th parliament.
Only two lawmakers had participated in the vote to accept the bill that was submitted by Thulusdhoo MP Ibrahim Naseem on behalf of the government in the last parliament. PNC members did not turn up on the floor of the house on the day of the vote.
The bill was again moved by PNC MP Ali Fazad on behalf of the government. The first reading of the bill was heard in Monday's session.
The re-introduced bill also contains the same things that were earlier dismissed from parliament.
The purpose of the bill is to give legal authority to the SDF. Thus:
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To describe the rules relating to the operation and maintenance of the fund and the use of the funds and other matters relating thereto
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The money in the Sovereign Fund may be used in accordance with the provisions of the Act with the permission of the President on the advice of the Governing Council
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The income accumulated in the fund should be included in the budget
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Any expenditure should be included in the budget
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The Governing Council will be formed and the members will be appointed and dismissed by the President
Important points
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With the enactment of the Act, an office under the Finance Ministry will be set up to manage the Sovereign Fund; it will function as an independent and separate financial functioning office
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The office will be headed by a CEO appointed by the Governing Council
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Once every three months, the office's CEO is required to submit a report to the Governing Council; it must specify the amount, expenditure, investments and remaining deposits in the fund
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The fund will publish its annual report
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The amount of money to be deposited in the fund will be determined by the President in consultation with the Governing Council; this amount can be reduced only with the approval of parliament
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Once that amount is achieved, the surplus amount will be deposited in the state budget as revenue
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An investment committee set up by the Governing Council to expand the fund can invest; investment can be made as per the investment policy formulated by the committee
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Maldives Monetary Authority (MMA), the central bank, is the custodian of the fund
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It is the responsibility of MMA as custodian to prepare and share inflow and outflow reports as directed by the Governing Council
