MACL's dollar-denominated salaries violate law and MMA directives!

Oct 24, 2024, 6:18 AM
MACL officials. -- Photo: MACL

MACL officials. -- Photo: MACL

The Maldives Airports Company Limited (MACL) employees are being paid 50 percent of their salaries in dollars in violation of the law and directives from the central bank, Adhadhu has learnt.

The Maldives Monetary Authority (MMA) ordered MACL, on December 18, 2023, not to pay salaries in dollars. A copy of the letter has been obtained by Adhadhu.

The letter stated that paying salaries in dollars is in violation of Article 24 of the MMA Act and the Authority's Rules.

Article 24 of the MMA Act states that if the Authority has determined a specific currency or currencies for use in transactions in Maldives, it is prohibited to use any currency other than that currency or currencies in transactions.

Section 5 of the Authority's Rules prohibits the use of any currency other than Maldivian Rufiyaa to pay for all items, labour, services, fees and rents of all businesses in the country except transactions exempted by the rules.

"Therefore, the decision of the Maldives Airports Company Limited referred to above [to pay part of the salary in dollars] is in violation of the law and monetary regulations of this authority. Thus, we order the company to pay full salaries of employees in Maldivian Rufiyaa."

The Privatization and Corporatization Board (PCB) and the Finance Ministry have also asked MACL not to pay salaries in dollars. However, the orders have been ignored and part of the salary is still being paid in dollars.

In an internal memo signed by MACL Managing Director Ibrahim Shareef on Tuesday, the MD told employees that President Dr. Mohamed Muizzu has assured him that there will be no change in the benefits, including paying one-half of the salary in dollars.

MACL employs more than 3,000 people.

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