Parliamentary approval should be made necessary to take out loans: MP Gafoor

North-Kulhudhuffushi constituency MP Abdul Gafoor Moosa has proposed an amendment to local public finance laws so as to make parliamentary approval ahead of taking out loans a necessity.

MP Gafoor said this during an interview with RaajjeTV on Friday night, where he highlighted the importance of details about a potential loan coming to public light and discussion.

Gafoor said that while the previous government had made many agreements and taken out multiple loans, the details remain obscure.

“Details of sovereign guarantee loans have not been submitted to the People’s Majlis yet”, Gafoor said.

Further, Gafoor expressed his belief that public financial matters are of great public interest and that they must be filtered through the parliament.

Gafoor’s comments come days after President Ibrahim Mohamed Solih accepted credit of over USD 1.4 billion from the government of India.

President Solih said that USD 200 million will be used to supplement next year’s state budget, while some of it is to be used for development projects. A chunk of the funds is also a credit line, which can be used only if required.

The Solih administration has been transparent about the loan, with the president himself having provided a breakdown to journalists at a press conference on Wednesday.