News Desk
MALÉ — Tensions in the People’s Majlis reached a fever pitch today as government and opposition lawmakers clashed over the administration’s controversial decision to utilize pension fund assets to finance state debt.
The debate, which spilled over into wider accusations of institutional corruption and political retribution, follows sharp criticism from the main opposition Maldivian Democratic Party (MDP). Earlier this week, MDP President Abdulla Shahid warned that the government’s plan to direct the Maldives Monetary Authority (MMA) to invest 2.4 billion MVR (approximately $155 million) of pension assets into state bonds constitutes “covert currency printing” that risks destabilising the national economy.
Government Defends Pension Asset Use
Addressing the parliamentary floor, Majority Leader Ibrahim Falah vehemently rejected the characterisation of the transaction as “printing money.”
Falah argued that utilizing savings held in pension funds or commercial banks to provide liquidity for state operations is a standard financial practice, not monetary expansion. Drawing a parallel to the personal business dealings of today’s chair, the Deputy Speaker, Ahmed Saleem (Redwave Saleem), Falah suggested that if a private entity places money in a long-term fixed deposit, and the bank subsequently uses those funds to issue loans, it is not considered “printing money.”
“To call this printing money is to deceive the public,” Falah stated, asserting that the opposition’s narrative is a politically motivated attempt to undermine the current administration’s fiscal management.
Heated Exchange Over Employment Practices
The session further devolved into a bitter row over allegations of politically motivated layoffs. MDP MP Maroof Zakir introduced a motion accusing the Muizzu administration of dismissing civil servants and employees of state-owned enterprises (SOEs) for expressing anti-government sentiment.
PNC lawmaker Mohamed Mamdhooh (Mandy) countered these claims, accusing the former MDP administration of using state jobs as a tool for patronage. He alleged that the previous government saturated SOEs, particularly Fenaka Corporation, with unnecessary staff to secure support for elections, ultimately forcing the companies to take on billions in debt to cover payroll costs.
However, MDP lawmaker Hussain Ziyad (“Fitte”) pushed back against this narrative. While acknowledging that overstaffing is a systemic issue, he argued that the current government’s approach to “right-sizing”—conducted in the wake of recent local council election results—amounted to retributive mass layoffs rather than legitimate reform.
Corruption Allegations at Fenaka
The debate also focused on the findings of a special audit report into Fenaka Corporation. PNC MP Ahmed Azaan claimed that the company’s debt had ballooned to 4 billion MVR by the time the current administration took office, citing evidence of gross mismanagement.
Azaan alleged that the previous leadership engaged in “blatant theft,” noting instances where the company spent 15 million MVR to lease equipment that could have been purchased for 4 million MVR. The Finance Committee has since recommended that these cases be referred to the police for criminal investigation.
The session highlights the growing divide in the Majlis, as both sides leverage economic policy and audit findings to frame the other as the primary architect of the country’s financial challenges.
