Parliament creates 9-MP committee to overdraft extension request

The People's Majlis have created a committee consisting of nine MPs in order to review the request for an overdraft extension submitted to parliament by the Minister of Finance.

Member of parliament for Alifushi constituency Mohamed Rasheed Hussain had proposed that the issue be reviewed by a nine-member temporary committee. The committee was established under the unanimous vote of all 51 MPs who participated in the vote during Wednesday's sitting of parliament.

MP for Central-Henveiru constituency Ali Azim had proposed names for the committee, and the following MPs were approved as members of the committee by the vote of 48 MPs on Wednesday.

1. Mohamed Ahmed, MP for North-Hithadhoo constituency

2. Ilyas Labeeb, MP for Meedhoo constituency

3. Yaugoob Abdulla, MP for Dhaandhoo constituency

4. Hussain Shaheem, MP for South-Henveiru constituency

5. Ibrahim Naseem, MP for Thulushdhoo constituency

6. Ahmed Siyam, MP for Meedhoo constituency

7. Gasim Ibrahim, MP for Maamigili constituency

8. Mohamed Saeed, MP for Maavashu constituency

9. Mohamed Rasheed Hussain, MP for Alifushi constituency

Speaker of Parliament and former president Mohamed Nasheed requested that the members of the committee quickly meet to review the issue of overdraft extension, and asked that the committee submit a report on their findings at parliament on Thursday. Speaker Nasheed added that bar any objections, the People's Majlis would proceed with voting on the report on Thursday.

On Tuesday, the People's Majlis had voted against MP Hassan Afeef's proposal that a special committee be established to review the Finance Ministry's request. Only 12 MPs had voted in favor off establishing the committee, and 48 MPs had voted against it, with one abstention.

Minister of Finance Ibrahim Ameer had on Monday addressed a letter to the People's Majlis, requesting a one year extension to the period of suspension for some clauses of the Fiscal Responsibility Act, so that the state may continue to obtain funds unlimitedly from the Maldives Monetary Authority (MMA) in order to manage it's budget and expenditure for the ongoing year. Under the Fiscal Responsibility Act, the government can only overdraw from MMA an amount that is equivalent to one percent of the state's average revenue, which is roughly MVR 170 million based on past figures.

The Fiscal Responsibility Act also requires that the state repay the loan to MMA within 91 days of it being issued. In April last year, the Ministry of Finance requested for an overdraw of MVR 4.4 billion, which had been approved by the People's Majlis where main-ruling MDP holds a super-majority. The overdraft extension issued last year is due to end on 26 April 2021.