Minister Saeed fails to specify opening date for Development Bank, which incurred 2.2 million MVR loss in first six months
Economic Minister Mohamed Saeed avoided giving a direct answer to MP Nazil’s inquiry regarding the official opening date of the Development Bank of Maldives. Despite not yet conducting any business transactions, an audit report revealed that the bank incurred a loss of MVR 2.2 million during the final six months of last year due to administrative overheads, including office rent and salaries. The Minister stated that efforts to bring the bank into full operation are currently underway.
President Dr. Mohamed Muizzu’s Minister of Economic Development and Trade, Mohamed Saeed. | People's Majlis | People's Majlis
Economic Minister Mohamed Saeed has failed to specify the exact date on which the newly established Development Bank of Maldives officially opened its doors for operations, despite the institution recording a loss of MVR 2.2 million within its first six months.
During Monday's People's Majlis sitting, Economic Minister Mohamed Saeed appeared for questioning, where Ibrahim Nazil, the Member for South Hithadhoo and Parliamentary Group Leader of the opposition Maldivian Democratic Party (MDP), inquired about the operational status of the Development Bank, specifically asking when its doors were last opened for business.
Declining to answer the question directly, the Minister emphasized the bank's importance. He further stated that efforts are currently underway to bring the bank into operation.
The Development Bank is a vital institution. We are currently undertaking the necessary work to operationalize it. When the honorable member asks this question, it occurs to me that we are discussing entirely new initiatives.Mohamed Saeed, the Minister of Economic Development and Trade in President Dr. Mohamed Muizzu's administration.
The Minister then spoke about the previous MDP administration, leveling heavy criticism against the former government. However, the Minister failed to address the specific question posed by the member during his remarks.
The initial financial statements of the Development Bank of Maldives Limited reveal that the institution incurred a significant loss of MVR 2.2 million during its first six months of operation.
According to an audit report released by the Auditor General's Office, the bank incurred a total loss of MVR 2,263,804 between July 21, 2024, and December 31, 2024. During this period, the bank conducted no business transactions and generated no revenue.
The primary reason for the bank's substantial loss is the high level of operational expenditure. During this period, the bank incurred 3,018,405 Rufiyaa in operating costs. The largest portion of this spending was allocated to various administrative expenses. Specifically, 1,130,597 Rufiyaa was spent on office rent, while 843,336 Rufiyaa was utilized for staff salaries and benefits. Additionally, the report reveals that 311,300 Rufiyaa was spent on directors' fees.
