Male’ mayoral candidate Ismail Zariyand states that Maldives Pension Administration Office (MPAO) cannot proceed with the government-proposed fund disbursement following the resignation of MPAO board’s CEO Sujatha Haleem, which occurred after the transaction was approved by the board.
In October last year, the MPAO received a proposal from the Finance Ministry to sell in the secondary market MVR 2.4 billion in treasury bonds invested in by the Maldives Retirement Pension Scheme and then invest in an MVR 2.4 billion treasury bond with dual currency – MVR and USD – returns.
The proposal prompted economic experts to warn it would have the same implications on the Maldivian economy as money printing.
But despite the warnings, the MPAO’s board approved the proposal on Monday.
The proposal prompted the resignation of multiple senior figures within the MPAO, including chairperson Dr. Ahmed Inaz, board member Ahmed Saruvash Adam, and Chief Financial Officer (CFO) Hawwa Fajwa.
The latest resignation came on Wednesday: MPAO board’s CEO Sujatha.
Referring to her resignation, Zariyand, via a post on X, noted that the funds had not been disbursed at the resignation of the CEO. He stressed that the disbursement cannot proceed without an active board and a CEO, which, if carried out, would violate MPAO’s 2023 Statement of Investment Principles.
As of the CEO’s resignation, the reported MVR 2.5bn government bond investment by the Maldives Pension Administration Office had not been disbursed. Without an active Board and CEO, such disbursement is not procedurally possible, and the disbursement is against MPAO’s 2023…
— Ismail Zariyand (@zariyand) February 4, 2026
MPAO has stated the the transaction will eliminate the need to purchase foreign currency from the market and create a foreign currency reserve within the pension fund, and also increase portfolio returns.
In June last year, the Maldives Monetary Authority (MMA) commenced Open Market Operations to absorb the excess MVR 7 billion in circulation as a result of money printing during the Covid-19 pandemic.
Saruvash, who was the first to resign from the MPAO’s board in protest of the proposal, told Sun that planned MVR 2.4 billion transaction will increase the money supply in circulation, marking a complete reversal of the central bank’s previous policy.
He told Sun that what the Maldivian economy needs right now is a contractionary monetary policy, given the need to mop-up the excess liquidity.
Many are expressing concern the transaction could endanger the pension of some 200,000 people.