ACC to probe government taking MVR300 million loan

Anti-Corruption Commission (ACC) has commenced an investigation of the government taking a loan from Bank of Maldives Limited (BML), of MVR300 million, which was not included in the budget.

An official of ACC said that the case had also been submitted to the Commission by a private group.

The government took the MVR300 million loan instead of the $65 million loan, which had been included as budget support.

Finance Ministry has confirmed that the loan had already been obtained when the case was sent to Parliament for approval.

According to regulations and budget recommendations, all loans included in the budget should be approved by the Parliament Finance Committee. As the MVR300 million loan was not included in the budget, Council General had advised that it required Parliament approval.

A resolution has been submitted to Parliament calling for action against the Finance Ministry in relation to this case.

According to the Finance Minister, the loan had to be obtained urgently due to budget difficulties.

Finance Ministry has also sent the issue of shortage in the Contingency Budget to the Parliament Finance Committee, and requested for urgent action.

Finance Ministry has estimated that the MVR14 billion budget will end up at MVR18 billion, resulting in a deficit of about MVR3.4 billion. IMF has also expressed concern over the increasing expenditure of the Maldivian government. It is estimated that the state deficit will reach 27 percent.