The Public Accounts Committee (PAC) decided today to advise the President to dismiss Maldives Monetary Authority (MMA) Governor Ali Hashim based on his written response to the committee’s dismissal proceedings after he failed to appear in person over the past three days due to illness.
The governor’s dismissal was proposed by Deputy Speaker Ahmed Nazim and seconded by Fuvahmulah Uthuru MP Hamad Abdulla. His dismissal was approved unanimously by eight MPs in attendance at today’s committee meeting.
Under the MMA law, the Parliament could advise the President to remove the governor. A final decision would be made after the issue is brought to the Parliament floor for a vote.
As in the past two days, Hashim did not attend today's committee meeting due to illness. The committee had been informed of his inability to attend. After previously submitting his defence in writing, Hashim asked the committee in a letter today to send any further questions in writing.
However, committee members said they wished to ask further questions to the governor in person. There were matters that needed to be clarified from the governor based on information shared with some parliamentary committees by state institutions, MPs said.
“Looking at this from a national perspective, just standing by and watching like this without doing anything about the governor could lead to a very regrettable situation. I think we should decide today to advise the President to remove the governor,” Deputy Speaker Nazim said.
Maamigili MP Qasim Ibrahim, who presided over the meeting as the committee’s chair, sought the opinion of MPs on sending further questions in writing and allowing the governor to respond. MPs decided unanimously to not offer a further opportunity.
According to a letter sent to the Parliament by the Finance Ministry, the MMA has not taken the initiative and offered advice since November 17, 2023, Nazim said.
Motion to dismiss
Presenting the motion, MP Nazim said he was seeking the governor's removal over the MMA's alleged failure to properly implement monetary policy before the country's economy weakened to the point where a full recovery became difficult.
He noted three points, including:
- The indirect limiting of loans issued to the public from the country's banks and financial institutions as well as the governor's encouragement to keep the reserves of banks at the MMA
- The failure to regulate the domestic market despite the importance of doing so at a time when the government was raising funds from the domestic market
- Outdated MMA regulations being noted among challenges to combating crime
Govornor's defence
In his written response to the committee, Hashim denied any dereliction of duty. 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, he said.
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.
