Parliament opens SDF Bill for public comment
Sovereign Fund office will function as an independent and financially segregated office.
By
Aishath Maha
The government's bill on Sovereign Development Fund (SDF) has been opened for public comments.
The bill was introduced in Parliament on 10th last month. The bill was rejected in the last Parliament, but it is now in committee stage.
Any comments or amendments to the bill should be submitted by 2 pm on the 9th of this month.
Comments can be submitted by email to [email protected] or in writing to the parliamentary office.
The purpose of the SDF Bill is to give legal authority to the SDF. Thus:
-
To describe the rules relating to the operation and maintenance of the fund and the use of funds and other matters relating thereto
-
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
-
The income accumulated in the fund should be included in the budget
-
Any expenditure from it should be included in the budget
-
The Governing Council will be formed and the members will be appointed and dismissed by the President
Important points
-
With the entry into force of this Act, an office under the Ministry of Finance shall be established under the name of the Sovereign Development Fund Administration Office to manage the Sovereign Fund; the office will operate independently and financially segregated
-
The head of the office is a CEO appointed by the Governing Council
-
The CEO of the office must submit a quarterly report of the fund to the governing council; the report shall describe the fund's deposits, expenditures, investments and balances
-
An annual report of the fund will be published
-
The amount of money deposited in the fund shall be determined by the President with the advice of the Governing Council; this amount can be reduced with the approval of Parliament
-
Once that level is achieved, the excess money will be credited to the budget as state revenue
-
The fund will be further expanded by the governing council and invested in an investment committee; investment will be made in accordance with the investment policy formulated by the committee
-
The central bank, the Maldives Monetary Authority (MMA), is the custodian of the fund
-
As the custodian, the MMA is responsible for preparing and sharing inflow and outflow reports as directed by the Governing Council.
