The chairperson of the Maldives Pension Administration Office (MPAO) board, Ahmed Inaz, has resigned following disagreements over a proposed MVR 2.4 billion pension fund investment in government bonds, adding to a series of departures linked to the transaction.
The proposal, approved by the MPAO board in October, involves the sale of a government bond in the secondary market through the Maldives Monetary Authority (MMA). The plan has drawn public scrutiny amid concerns that the transaction could amount to indirect money creation and increase risks to pension fund assets.
In a post on X on Sunday, Inaz said he was stepping down with immediate effect, stating that discussions on the proposed investment had not produced what he considered a sustainable solution. He expressed concern that raising funds through the MMA in the current economic environment could have adverse implications. Inaz, who previously served as Finance Minister, also said he hoped future fiscal reforms would place the economy on a more sustainable footing.
His resignation follows earlier departures from the pension authority. Board member Saruvash Adam resigned on October 22, citing legal and economic concerns related to the bond transaction, while Chief Financial Officer Hawwa Fajuwa stepped down on November 4, saying her decision was taken after careful consideration without elaborating further.
According to the proposal, the bond sale would allow the government to raise MVR 2.4 billion, a move that some media outlets have said was intended to settle outstanding payments to private companies. However, President Mohamed Muizzu has stated on multiple occasions that MVR 2.3 billion in payments to private firms would be made without resorting to money printing.
The debate intensified in November, when the Ministry of Finance announced plans to raise MVR 3 billion through treasury bills, while the Pension Office listed bonds worth MVR 2.37 billion for sale. These parallel funding measures added to concerns about the growing exposure of the pension fund to government securities.
Business figures have warned that an increasing reliance on treasury bills and bonds could weigh on long-term returns for pension contributors, arguing that broader investment in private sector opportunities may offer stronger yields. Responding to the concerns, MMA Governor Ahmed Munawwar said on Saturday that the central bank would take necessary steps to ease pressures arising from the bond investment.
The resignations have placed renewed attention on governance and risk management at the pension fund, as policymakers continue to balance near-term financing needs with longer-term considerations around fiscal stability and retirement savings.
