Pension Office’s CEO Sujatha resigns amid mounting pressure

Sujatha Haleem resigned from her post as CEO of the Maldives Pension Administration Office (MPAO) on Wednesday, amid mounting criticism over the decision of the office’s board to approve an MVR 2.4 billion transaction proposed by the government.

In October last year, the MPAO received a proposal from the Finance Ministry to sell in the secondary market MVR 2.4 billion in treasury bonds invested in by the Maldives Retirement Pension Scheme and then invest in an MVR 2.4 billion treasury bond with dual currency – MVR and USD – returns.

The proposal prompted economic experts to warn it would have the same implications on the Maldivian economy as money printing.

The proposal prompted the resignation of multiple senior figures within the MPAO, including chairperson Dr. Ahmed Inaz, board member Ahmed Saruvash Adam, and CFO Hawwa Fajwa.

But despite the warnings, the MPAO’s board approved the proposal on Monday.

Sun has been informed that Sujatha tendered her resignation on Wednesday, becoming the latest senior figure to exit the MPAO.

The staff of the office have been notified of her resignation.

Sujatha was appointed from Acting CEO to CEO of the MPAO on October 31, 2022.

Her resignation comes a day after the MPAO issued a statement justifying its decision to approve the proposal.

The MPAO said the transaction will eliminate the need to purchase foreign currency from the market and create a foreign currency reserve within the pension fund, and also increase portfolio returns.

In June last year, the Maldives Monetary Authority (MMA) commenced Open Market Operations to absorb the excess MVR 7 billion in circulation as a result of money printing during the Covid-19 pandemic.

Saruvash, who was the first to resign from the MPAO’s board in protest of the proposal, told Sun that planned MVR 2.4 billion transaction will increase the money supply in circulation, marking a complete reversal of the central bank’s previous policy.

He told Sun that what the Maldivian economy needs right now is a contractionary monetary policy, given the need to mop-up the excess liquidity.

Many are expressing concern the transaction could endanger the pension of some 200,000 people.