The government did not heed advice offered by the central bank with information needed to save the country from an economic disaster, Maldives Monetary Authority (MMA) Governor Ali Hashim has said.
Adhadhu has obtained Hashim's written response to the Parliament's Public Committee over his alleged failure to fulfil the duties of the central bank's governor. The response was attached to a letter sent to inform the committee of his inability to attend a meeting scheduled for today due to illness.
In his response, Hashim said the MMA had provided advice to the government, stressed the importance of taking the necessary measures and shared the information needed to avert an economic disaster before it struck.
The basis of the dangerous economic outlook facing the country at present was the failure to listen to the advice and recommendations by the MMA and international financial institutions, Hashim added, noting his willingness to attend and share the information in person at the committee.
"The main reason for the big fear of facing a disaster is the authorities not paying heed to the instructions and advice from this authority and international financial institution and not maintaining the fiscal discipline for which we have long advocated," Hashim said.
In his response to the committee, Hashim also refuted other reasons proposed for his dismissal as governor.
The reasons included the MMA's encouragement for banks to limit the issuance of loans, failure to regulate the domestic market or update regulations to combat financial crimes, and not working to serve the purpose of the MMA law in advising the current government.
Stating his views and defence in detail in response to each of the points, Hashim said he has worked to date to fulfil the MMA's responsibilities within legal bounds. He assured the full cooperation of the central bank to overcome the present economic situation.
