MVR 6.5mn spent on non-operational Development Bank
The bank was officially inaugurated by President Muizzu on 16 November 2024. However, to date, the bank has not provided any services
The president inaugurates the Development Bank of Maldives (file photo)
The government has spent MVR 6.5 million on expenses for the Development Bank, which was intended to be unveiled in a flashy manner, despite the bank not yet being operational.
In response to an RTI request submitted by lawyer Ahmed Mauroof seeking information on the funds spent on the Development Bank of Maldives and related matters from the start of its establishment until 25 March 2025, under the Right to Information Act, it was stated that the total expenditure by the Ministry of Finance was MVR 6,566,338.20.
This amount includes expenses for the bank's branding, license fee, opening ceremony, office building, rent, salaries, travel, and consultancy and professional fees. However, the ministry has not disclosed the individual breakdowns for these expenses.
Noel Gregor Paterson-Jones, the CEO and Managing Director of the Development Bank established by the current administration, resigned while the bank remained non-operational. His resignation followed the non-payment of his salary. Paterson-Jones filed a case with the Employment Tribunal on April 7, 2025, citing unpaid salary and benefits.
Noel was appointed as the CEO and MD of the company in August 2024. He resigned on 23 March 2025, before the bank established by the current administration of President Dr. Mohamed Muizzu could provide any services.
While the government has not disclosed the reason for Noel's resignation, the Privatization and Corporatization Board (PCB) announced on 23 March 2025 that they had accepted his resignation and relieved him of his duties.
The "Development Bank of Maldives Limited", a 100 percent government-owned company, was established on 16 May 2024. This company was formed under the authority granted to the president by Article 15 of Law No. 2023/7, or the Companies Act.
The company was established to invest in sustainable economic and social development in line with government policies, to secure funding for infrastructure development, to address challenges in providing financing for PSIP projects through syndication finance, and to increase interest in holding foreign currency in the Maldivian banking system.
The bank was officially inaugurated by President Muizzu on 16 November 2024. However, to date, the bank has not provided any services. Noel was appointed as the CEO and MD of the company in August 2024.
