Sovereign fund bill stalled amid Finance Ministry delays

The parliamentary Public Accounts Committee has expressed concern regarding the delay in the Sovereign Development Fund (SDF) Bill. 

Although initially introduced by the current government, its progress has been impeded by a lack of crucial information from the Finance Ministry.

The government first proposed the SDF Bill during the 19th Parliament, where it was rejected by the then-majority Maldivian Democratic Party (MDP). The bill was reintroduced to the 20th Parliament on June 10 of the previous year and has remained in committee for over a year since June 25 of the same year.

According to the Public Accounts Committee, the SDF bill was sent to the Finance Ministry for review. The Ministry indicated a desire to amend the bill to align with International Monetary Fund (IMF) requirements, but the proposed amendments were received three months later. 

Four months have passed since the 20th Parliament sought comments from the Ministry at the conclusion of the last parliamentary session. Subsequently, a letter from the committee prompted the Ministry to request additional time for submitting amendments to the bill, as documented in the administrative records of the Public Accounts Committee.

During Wednesday's Public Accounts Committee meeting, Committee Vice-Chairman and Eydhafushi Constituency Member Ahmed Saleem stated that the delay in the SDF Bill is attributable to the absence of amendments from both the Finance Ministry and the Attorney General.

Meanwhile, Hanimaadhoo MP Abdul Ghafoor Moosa highlighted the issue of institutions withholding the bill due to insufficient information provision. Ghafoor remarked, "It's a big problem, now we have to send it to them while asking in advance to return it at a certain date. If they don't submit it on time, then don't we have to go ahead, deciding it isn't available?" He further emphasized that a bill should only reach Parliament after all discussions and consultations have been finalized.

Parliament Deputy Speaker Ahmed Nazim asserted that the SDF Bill will not be completed unless the Finance Ministry demonstrates due diligence. Nazim noted that the ministry has been afforded ample opportunity to provide input on the bill. He suggested, "So I think we should directly tell the Minister on behalf of the Speaker that this has happened."

During the discussion, Hulhumale South MP Dr. Ahmed Shamheed inquired whether the Ministry's delay was technical in nature. Saleem subsequently stated that if the Finance Ministry fails to provide feedback on the SDF bill by the next deadline, the committee will proceed to pass the bill as it deems appropriate.

The proposed SDF Bill outlines the establishment of a "Sovereign Development Fund Administration Office" under the Ministry of Finance, responsible for managing the sovereign fund. The bill mandates its CEO to submit quarterly reports to the governing council, detailing transfers to the fund, expenditures, investments, and the balance. The fund's limit will be determined by President Dr. Mohamed Muizzu based on the governing council's counsel, with the Maldives Monetary Authority (MMA) serving as the fund's custodian.

The SDF was originally established during former President Abdulla Yameen's administration to facilitate the repayment of loans incurred for developmental projects in anticipation of unforeseen events. The fund also served as a safeguard during unexpected economic crises.