Pension Board Chair Resigns Over Concerns About Government Bond Deal as ‘Money Printing’ Fears Mount
Ahmed Inaz, chairperson of Pension Office, announced his resignation on X. | Photo: President’s Office
The Chairperson of the Maldives Pension Administration Office (MPAO), Ahmed Inaz, resigned today due to concerns about a government bond deal, warning that the multi-billion-rufiyya transaction threatens to inflict “significant harm” on the nation’s economy.
Inaz, a former Minister of Finance and Treasury, announced his departure on social media, citing a fundamental breakdown in negotiations over a proposed MVR 2.4 billion government bond. His exit marks the third high-profile departure from the Pension Office, following the resignations of Chief Financial Officer Hawwa Fajuwa and board member Saruvash Adam.
Technical Objections to Central Bank Involvement
In a series of posts on X, Inaz revealed that despite “extensive deliberations,” the board failed to reach a sustainable solution regarding the bond. He specifically raised the alarm over the decision to secure funds through the Maldives Monetary Authority (MMA), the nation’s central bank.
“I believe, from a technical standpoint, that securing funds for this transaction through the MMA is a decision that will cause significant harm to the economy under current circumstances,” Inaz stated. He further urged the government to abandon what he described as a “debt trap” in favour of “far-sighted policies” to restore fiscal stability.
Deepening Crisis at the Pension Office
The move has triggered intense public scrutiny and accusations of “indirect money printing,” as the central bank effectively facilitates government spending by absorbing state debt.
The resignation of CFO Hawwa Fajuwa followed the board’s approval of the deal in October, while Saruvash Adam, representing the private sector, stepped down on 22nd October, citing “legal and economic concerns.”
Government Denies Fiscal Mismanagement
President Dr Mohamed Muizzu has previously rejected claims that his administration is engaging in inflationary practices. The President has repeatedly maintained that government payouts do not involve the printing of new currency, reiterating a firm commitment to fiscal discipline.
Despite these assurances, the back-to-back resignations of the Chairperson, the CFO, and a key board member have intensified fears regarding the long-term security of the nation’s retirement funds. Critics argue that using the Pension Office to facilitate central bank-backed debt risks exacerbating inflationary pressures and undermining the independence of the institution.
