Maldives Pension Administration Office (MPAO) board member Ahmed Saruvash Adam has resigned following the approval of a controversial transaction involving the sale of a government bond to the Maldives Monetary Authority (MMA).
The decision, approved by the MPAO board last week, allows the sale of a government bond in the secondary market through the central bank. The transaction, valued at approximately MVR 2.4 to 2.5 billion, has drawn public criticism amid concerns that it could be equivalent to printing money.
Saruvash, who represented the private sector on the MPAO board, announced his resignation on Wednesday via a post on X. In his statement, he said he chose to step down to uphold the principles of prudence, integrity, and institutional independence, citing serious legal, fiduciary, and economic concerns over the board’s decision.
According to information shared in his resignation letter, three of the five board members voted in favour of the transaction, while two opposed it. MPAO Chairperson Ahmed Inaz reportedly did not participate in the vote. Saruvash noted that the Pension Office acted as an intermediary in the arrangement, with the Finance Ministry requesting the sale of Treasury Bills to the MMA in order to meet budgetary needs.
He argued that the deal effectively channels funds from the central bank to the government through the pension fund, warning that it could increase the supply of Maldivian Rufiyaa or require converting US dollars from state reserves. He also raised concerns about the lack of transparency and the absence of a formal legal review before proceeding with the decision.
Saruvash previously served as Chief Financial Budget Executive at the Ministry of Finance and as Chairperson of the Maldives Inland Revenue Authority (MIRA). He resigned from the Finance Ministry earlier this year.
The Finance Ministry has defended the transaction, describing it as a secure investment arrangement between the MMA and the pension fund, rather than monetary expansion. A senior official said the arrangement would allow the government to meet its financial obligations while also creating new investment opportunities for the pension fund.
The controversy comes as the government prepares to pay MVR 2.3 billion to private businesses and contractors over the next 10 days, part of an effort to clear overdue payments. Some opposition figures and economic experts have linked the bond sale to this plan, arguing that it amounts to indirect money printing and could exacerbate inflationary pressures.
President Dr Mohamed Muizzu has maintained that the payouts will not involve printing money, reiterating his administration’s commitment to fiscal discipline.
