Resolution submitted seeking parliamentary counsel on Muizzu administration's plan to print MVR 2.4 billion

Mohamed Ibrahim, the Member of Parliament for North Galolhu, has submitted a resolution seeking the Parliament's stance on the government's plan to print 2.4 billion Rufiyaa under the administration of President Dr. Mohamed Muizzu.

While Kudoo submitted this resolution, President Muizzu’s administration has moved to indirectly print money through a strategic maneuver involving the Pension Fund. The Pension Office Board has decided to sell MVR 2.4 billion in bonds currently held by the fund to the Maldives Monetary Authority (MMA), with the resulting proceeds slated for reinvestment into government bonds. This resolution was formally introduced during Tuesday’s sitting of the People’s Majlis.

In this regard, the resolution submitted by Kudoo states that it seeks the Parliament's counsel regarding government actions that allegedly contravene the financial principles established in the Constitution of the Republic of Maldives, the State Finance Act, the Pension Act, and the Fiscal Responsibility Act, as well as the 2026 State Budget approved by the People's Majlis.

The resolution states that, according to the Constitution, expenditures must not exceed the limits approved by Parliament without its explicit authorization. Furthermore, it stipulates that funds allocated in the budget for specific purposes must be utilized solely for those designated objectives.

The resolution further highlights that under the law, it is prohibited to expend state funds, or to sell, destroy, or dispose of state property, in any manner other than those expressly prescribed in the State Finance Act and its accompanying regulations.

Furthermore, the resolution states that under the Pension Act, any proposal by the government or any other party regarding the investment of pension assets must be submitted in writing and publicly disclosed.

The resolution states that under the Fiscal Responsibility Act, the government is permitted to borrow funds solely as advances for cash flow management, provided such amounts are repaid within 91 days. It further highlights that such borrowings must not exceed 2.5% of the average total revenue earned by the state over the preceding three years. However, the resolution alleges that information has been received indicating an attempt to circumvent these regulations. It claims that an illicit transaction is being facilitated through the Pension Fund to enable the government to acquire funds in violation of the established legal framework.

The resolution highlights that the government's withdrawal of funds from the Pension Fund through such transactions is a blatant violation of established legal frameworks and principles. It further notes that several senior officials at the Pension Office have resigned in protest against these actions.

Kudoo highlighted that the opposition from numerous capable experts underscores the gravity of the risks involved. He further noted that the government's actions clearly demonstrate a pattern of mismanaging and depleting the public's retirement savings held within the pension fund.

The resolution stated that this move compromises the independence of the Pension Fund and risks undermining the credibility of the Maldives' entire financial system. It further noted that the government is proceeding without seeking parliamentary approval or notifying the Majlis, acting outside the scope of the revenue-raising measures outlined by Finance Minister Moosa Zameer in this year's approved state budget.

Kudoo stated that the transaction could lead to a depreciation of the Maldivian Rufiyaa and a sharp surge in foreign exchange rates, potentially resulting in a significant increase in the cost of goods and services.

The resolution states that it seeks to determine the views of Parliament members regarding the Pension Office's dealings, in order to fulfill the constitutional obligation mandated to the Parliament to hold the government accountable.