The issue of recommending President Dr. Mohamed Muizzu to remove Governor of Maldives Monetary Authority (MMA), Ali Hashim, from office has been referred to the Parliament’s Public Finance Committee for consideration.
The ruling PNC filed a complaint against Governor Hashim to the Parliament’s Public Finance Committee, alleging he had not fulfilled his duties or achieved the objectives of the MMA Act since President Dr. Mohamed Muizzu took office in November 2023. The complaint emphasized that the central bank needs new leadership to navigate the country out of its current economic difficulties.
On Monday, the Public Finance Committee, where PNC holds a clear majority, voted to approve recommending the removal of Governor Hashim to President Dr. Muizzu.
During today’s Parliament session, the Public Finance Committee’s decision to was brought to the floor. In a letter to the floor, the Finance Committee stated that the country’s economy had deteriorated to a point where it is difficult to recover, and MMA, being the central bank, had failed to fulfilled the targets outlined in MMA’s regulations. The committee also noted that MMA’s monetary policy did not appear to be functioning effectively.
Moreover, the committee highlighted that relevant authorities had noted that MMA had not updated its regulations, posing significant challenges to the efforts to reduce crime.
“Information shared by the Minister of Home Affairs and the Maldives Police with the Parliament’s Security Committee highlighted MMA’s failure to update its regulations among the challenges to prevent crime,” the committee said.
The Public Finance Committee reported that the Governor had urged banks and financial institutions to withhold lending to the public and keep their reserves with the MMA. This has reduced the amount of money in circulation and slowed economic activities, dampening the country’s economic speed.
In addition, the committee noted that since November 17, 2023, the MMA has not advised the government or made strong efforts to achieve its objectives.
After the committee's letter was presented, Speaker Abdul Raheem Abdullah announced that he would refer the matter back to the Public Finance Committee to initiate proceedings.
Ali Hashim was appointed as the Governor of the MMA on September 8, 2019, during President Ibrahim Mohamed Solih’s term.
