MVR 4.5 million spent on DBM’s office setup

Maldives Transport and Contract Company (MTCC) was paid over MVR 4 million by the state to set up the office for the Development Bank of Maldives (DBM), which has yet to be operationalized.

The establishment of a development bank in Maldives was one of President Dr. Mohamed Muizzu’s electoral pledges. He used the powers vested in him under the Companies Act to form the Development Bank of Maldives Limited on May 16, 2024. The Economic Ministry applied with the central bank, Maldives Monetary Authority (MMA) for a license to operate DBM on July 28, 2024, and the license was granted two months later on October 13, 2024. The DBM was inaugurated on November 16, 2024, but has yet to be operationalized.

Ahmed Mauroof, an attorney-at-law, filed a petition under the Right to Information Act seeking details regarding the payment made by the Economic Ministry for the design, maintenance and interior contract awarded to MTCC to develop an office for the DBM at the Allied Building in Male’.

In response, the Economic Ministry said that MTCC was paid MVR 4.5 million for the office setup work, up until the work on DBM was transferred to the Finance Ministry.

In response to a previous RTI filed by Mauroof, the Finance Ministry had said that total MVR 6.5 million has been spent on the bank as of March 25.

However, the Finance Ministry did not provide any details regarding the expenses.

The DBM has also racked up over MVR 455,000 in rent for its office at the Allied Building, which is owned by the State Trading Organization (STO).

Noel Gregor Paterson-Jones, who was appointed as the CEO and Managing Director of the DBM on August 26, 2024, tendered his resignation on March 20. He lodged a case with the Employment Tribunal on April 7, seeking his alleged remuneration for the notice period of his resignation.

Shortly after Paterson-Jones’ exit from DBM, another board director, Ahmed Ali, tendered his resignation on March 23.

The DBM has said that it is working on recruiting replacements.

The delay in the operationalization of the DBM was sparked public concern. However, Economic Minister Saeed rejected this criticism in a press briefing back in April, insisting that rollout of the bank is progressing “on schedule”.