Pension Board chair defends fund security amid bond deal and resignations

Chairman of the Pension Office Board, Dr. Ahmed Inaz, has assured that the management has not violated any rules and that the security of the Pension Fund will be maintained.

His remarks come amid public criticism following a transaction between the Maldives Monetary Authority (MMA) and the Pension Fund, under which the central bank invested MVR 2.5 billion into the fund. The Pension Office is set to invest the amount in a government bond.

The move has sparked concern among some observers, who claim it amounts to printing money. Inaz addressed the issue in a post on X, stating that the board and management have acted in full compliance with laws, policies, and procedures governing the Pension Office.

“Safeguarding the Pension Fund is my foremost responsibility as chairman,” Inaz wrote, adding that governments routinely consult stakeholders to mitigate the fiscal impact on pension sustainability.

The controversy has coincided with two high-profile resignations. Saruvash Adam, who represented private businesses on the Pension Board, resigned on October 22. On November 9, Chief Financial Officer Hawwa Fajuwa also stepped down, without publicly stating a reason.

Some media outlets have quoted Finance Ministry officials as saying the transaction was intended to pay private companies. However, President Dr. Mohamed Muizzu has repeatedly stated that MVR 2.3 billion will be disbursed to private firms without printing money.

On November 10, the Finance Ministry announced the sale of MVR 3 billion in T-bills to raise funds for government expenditure. The Pension Office has also listed bonds worth MVR 2.37 billion for sale.

Concerns persist over the fund’s exposure to government securities.  

Business leaders have warned that excessive reliance on T-bills and bonds may yield lower returns for contributors. Some argue that channeling investments into the private sector could offer better yields.

Addressing those concerns, MMA Governor Ahmed Munawwar said Saturday that the central bank would make necessary adjustments to ease pressure from the bond investment.