MDP slams Ras Malé funding claims, calls for Governor’s resignation
The opposition party has called for the resignation of the central bank governor, accusing him of lacking independence and following the government's orders
Reclamation ongoing as part of the Ras Malé development project
The main opposition party, the Maldivian Democratic Party (MDP), has called for the resignation of Maldives Monetary Authority (MMA) Governor Ahmed Munawar, asserting that he should step down if he is unable to operate independently. MDP warned that using state reserves to fund the Ras Malé reclamation project poses a serious risk to the country’s financial stability.
At a press conference held by MDP on Monday, former Minister of Finance Ibrahim Ameer said that President Dr. Mohamed Muizzu has instructed his cabinet’s Finance Minister to release funds from the country's official reserves for the reclamation of Ras Malé, and has ordered the Ras Malé company to borrow USD 500 million dollars. However, he stated that it is unclear how this money will be obtained.
Ameer said that this is not an appropriate action to take at a time when the official reserves are significantly weak. He added that this could potentially lead to difficulties in importing fuel and food items.
Further, Ameer stated that MMA lacks independence and is being run according to the government's wishes. He said that if the governor cannot work independently, he should resign.
Ameer also raised questions about how the USD 200 million would be obtained from Maldives Airports Company Limited (MACL), USD 100 million from State Trading Organization (STO), and USD 300 million from the Ras Malé company.
Highlighting that there is no guarantee of repayment for funds currently drawn from the usable reserves, Ameer said that halting all projects in the country and proceeding with the reclamation of Ras Malé is very dangerous. He characterized this as a move that would lead to the devaluation of the Maldivian Rufiyaa and push the country towards bankruptcy.
