Gov’t spends MVR 11.9m on non-operational Development Bank

The government has spent MVR 11.9 million on the Development Bank of Maldives, an institution that, nearly a year after its establishment, has yet to begin operations or provide any services.

The Development Bank of Maldives Limited, a fully state-owned company, was incorporated on 16 May 2024, under powers granted to the president by Article 15 of the Companies Act (Law No. 2023/7). The Maldives Monetary Authority (MMA) issued the bank its operating license on 13 October 2024, with the expectation that services would commence within one year. However, despite the expiration of that deadline, the bank remains inactive.

Figures obtained by Adhadhu News under the Right to Information Act reveal that a total of MVR 11,998,267 has been spent on the bank from its inception to the end of August this year. The government has not provided a breakdown or explanation of these expenditures.

Finance Ministry records show that MVR three million was spent in 2024, while an additional MVR 8,998,267 was disbursed between January and August this year. Despite these allocations, there is no evidence of progress toward operational readiness.

Although the bank’s office has been established in the Allied Building, the State Trading Organization (STO) has confirmed that no rent payments have been made for the space. In July, STO stated that it had not received any rent from the Development Bank of Maldives since the office was set up.

The Muizzu administration launched the Development Bank with promises that it would support national development projects and expand financing opportunities. Yet, as of now, the initiative stands as a costly entity with no tangible output, which serves as a reminder of growing concerns over government spending without accountability or results.