Whereabouts of $900m debt repayment funds unknown despite government using reserves: MP Shamheed
Member of Parliament Ahmed Shamheed has expressed grave concern over the lack of transparency regarding approximately $900 million collected from citizens and businesses for debt servicing, alleging that the government is instead depleting national reserves to meet its obligations. With total state debt approaching MVR 160 billion due to an influx of new loans, Shamheed demanded the administration clarify its strategy for securing the $600 million required for the remainder of the year. Furthermore, he highlighted that the true extent of the nation's indebtedness remains unclear as the government continues to withhold essential financial reports and fiscal data.
Member of Parliament for the South Hulhumale constituency, Dr. Ahmed Shamheed, speaking during a program on RaajjeTV. | RaajjeMV
Dr. Ahmed Shamheed, the Member of Parliament for the South Hulhumalé constituency, has stated that while the Maldivian public provided the funds necessary to settle the nation's debts, the government instead utilized the state reserves for these payments, leaving the actual whereabouts of the public's money unknown.
Speaking on RaajjeTV’s "TV Talk" program, MP Shamheed stated that while President Dr. Mohamed Muizzu claims to have settled outstanding debts, the funds for these payments were provided to the government by the public. He noted that although the debt was serviced using the national reserve, the whereabouts of approximately $900 million contributed by the citizens remain unknown.
Shamheed stated that the government must provide full disclosure on the matter, describing it as a serious concern. He further emphasized that the funds held in the reserve serve as a security measure, intended specifically for emergency use to meet the essential needs of the citizens.
To settle this debt using public funds, an additional $600 million was collected from business owners and resort employees last year under the pretext of loan repayments. If I recall correctly, the figure is closer to $900 million. The President himself noted in his Presidential Address to Parliament that $900 million was received last year. This is further corroborated by statistics from the Maldives Inland Revenue Authority (MIRA) and the Maldives Monetary Authority (MMA). Approximately $900 million was generated through currency exchange and increased tax revenue. Therefore, the Maldivian people and business owners handed over the necessary funds to the state last year specifically to service these loans. However, when the time came to settle the debt, the payment was instead drawn from the national reserves. This became one of the most heated topics of debate in Parliament today. I maintain that the payment was made using funds from the reserves, a point they refuse to concede. Nevertheless, a review of the MMA's statistics confirms this. There are always funds in the reserves; these were the funds remaining in the reserves at the conclusion of the MDP administration.Dr. Ahmed Shamheed, Member of Parliament for the South Hulhumalé constituency.
MP Shamheed stated that the current administration is acquiring more debt than it is repaying. Consequently, he noted that the total national debt has now escalated significantly.
MP Shamheed stated that while the national debt stood at approximately 123 billion rufiyaa at the end of the MDP administration, it has surged to nearly 160 billion rufiyaa under the current government. Furthermore, Shamheed noted that the exact current debt figure remains unknown, as the Parliament's Public Accounts Committee has yet to receive the statistical data for the first quarter of this year.
MP Shamheed stated that while $600 million remains to be paid within the current year, it is unclear how these payments will be settled.
