The Public Accounts Committee of Parliament has approved a recommendation to remove Ali Hashim from his position as Governor of the Maldives Monetary Authority (MMA). This decision has been forwarded to President Dr Mohamed Muizzu for further action.
During today’s committee meeting, Deputy Speaker of Parliament and Dhiggaru MP Ahmed Nazim proposed the motion, which received overwhelming support from committee members, except for Dr Ahmed Shamheed of the Maldivian Democratic Party (MDP), who represents the South Hulhumalé constituency.
Addressing the committee, Nazim highlighted the government’s preparations to implement an economic reform agenda aimed at improving the nation’s fiscal situation. He underscored the necessity of introducing relevant laws and policies to support this agenda. Nazim criticised the central bank for failing to achieve the objectives outlined in the Maldives Monetary Authority Act, particularly at a time when the Maldives’ economy is under distress. He stated that the monetary policy, which is one of the foundational responsibilities of the MMA, is not functioning effectively.
Nazim pointed out that the Governor had urged banks and financial institutions to maintain their reserves in the MMA, indirectly aiming to limit their lending to the public. This, he argued, has resulted in reduced money circulation in the economy, causing economic activities to come to a halt and slowing down the pace of economic growth. He also noted that the government is currently raising financing from the domestic market, highlighting the need for proper regulation at this critical time. Additionally, Nazim cited information from the Ministry of Homeland Security and Technology and the police, which indicated that outdated MMA regulations were hindering efforts to prevent crime.
Criticising Governor Ali Hashim for his failure to advise the government on achieving the objectives outlined in the MMA Act, Nazim stressed the importance of the MMA undertaking crucial work to mitigate financial distress in the economy. He asserted that Ali Hashim has not fulfilled his responsibilities as Governor. Nazim emphasised the need for the MMA to consider amendments to the monetary policy if necessary, and added that the MMA now requires “brand new leadership.” In accordance with Article 6(3) of the Maldives Monetary Authority Act, Nazim proposed recommending the removal of Governor Ali Hashim to the President.
Ali Hashim was appointed as Governor on 8 September 2019, during the administration of former President Ibrahim Mohamed Solih. He had also previously served as the Finance Minister of Maldives from 2008 to 2010.
