Governor’s defense: Govt. did not act on the counsel provided

Central bank, Maldives Monetary Authority (MMA)’s Governor Ali Hashim has attributed Maldives’ current economic troubles to the failure of the government to act on counsel provided by MMA and international financial institutions over the past years.  

Parliament’s Deputy Speaker Dhiggaru MP Ahmed Nazim has initiated a no-confidence motion against Hashim, accusing the Governor of failure to perform his duties as the head of Maldives’ central bank while the country’s economy declined to a point where it would be difficult to revive.

Hashim did not attend the meeting of the Parliament’s Public Accounts Committee scheduled for Monday morning as they reviewed the no-confidence motion.

Instead, he sent a letter sent to the Parliament in which he attributed his non-attendance to poor health, as confirmed to Sun by the Parliament Secretariate.

Hashim, in his letter, also refuted the accusations against him.

In this regard, Hashim said both he and MMA believe they have provided adequate information and instructions on how to guide a nation away from an economic crisis before it happened.

“You must [Public Accounts Committee] be aware that the Authority, during discussions held at the Parliament’s Public Accounts Committee over the past two years alone, has been pointing out the risks to the economy and in this trajectory emphasized the importance of taking preventing measures by the government and relevant authorities,” the letter read.

Hashim also said MMA was undertaking efforts to ensure ways a total economic slump can be avoided and reach a safe point in circumstances where the nation is battling an economic crisis.

He also refuted accusations that the current administration has not been counseled since assuming office and the failure to undertake efforts to implement MMA’s monetary policy to the best capacity.

In this trajectory, he detailed efforts undertaken by MMA, particularly referring to counsel provided by the central bank regarding this year’s state budget and discussions held at various stages and in writing with the Finance Ministry and the parliament on the negative impacts on the reserve.

Nazim, in his no-confidence motion, said Hashim recommended indirect measures to control the issuance of bank loans and for banks to maintain reserves at a certain limit which had reduced the amount of money circulating in the economy. Moreover, he added that he does not see MMA properly regulating the domestic market, which the government is now seeking funds from

According to the Maldives Monetary Authority (MMA) Act, the governor of the central bank will be dismissed by the president, under the advisement of the parliament.

Hashim was appointed as the governor of MMA on September 8, 2019, during the Maldivian Democratic Party (MDP) administration, which held office from 2018-2023. He also served as finance minister from 2008-2010 during the first MDP administration.