Pension Office Appoints Two New Members After Series of High-Level Resignations

The Pension Office has appointed two new members following a series of senior-level resignations from the Maldives Pension Administration Office (MPAO) earlier this year amid ongoing controversy surrounding a government bond transaction.

The new appointments are Yameen Idris, who joins as a board member, and Abdul Majeed Ali, who has been appointed Chairperson.

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The changes come after a period of sustained turnover in the institution’s senior leadership, linked to concerns over a proposed government financial arrangement involving the pension fund.

Chief Executive Officer of the MPAO, Sujatha Haleem, submitted her resignation to the Pension Board on 5 February. Her departure marked one of several exits from senior management positions during the period of restructuring and dispute over the fund’s investment strategy.

The resignation of Chief Financial Officer Hawwa Fajuwa followed the board’s approval of a controversial transaction in October, while board member Saruvash Adam, representing the private sector, stepped down on 22 October, citing legal and economic concerns.

Sujatha’s resignation was the fourth senior-level exit within a five-month period, as debate intensified over a proposed government bond arrangement involving the pension fund.

The proposed transaction involved the Pension Fund selling government bonds worth MVR 2.4 billion to the Maldives Monetary Authority (MMA) and subsequently using the proceeds to purchase a government bond valued at MVR 2.5 billion. If implemented, the arrangement would have increased the government’s domestic debt by MVR 2.5 billion.

In a statement, the Pension Office defended the decision, stating that the investment was made in consultation with advisers involved in the long-term investment strategy of the Maldives Retirement Pension Scheme. It said the structure was intended to help build a foreign currency reserve without directly purchasing foreign exchange from the market.

However, the move drew criticism from economists, who warned it could place additional strain on the country’s financial position.

Following the board meeting in October that approved the transaction, Saruvash Adam resigned citing concerns over the deal. CFO Hawwa Fajuwa also stepped down later that month without giving an official reason. More recently, the chairperson of the Pension Board resigned on Sunday, warning that the transaction could cause “significant harm” to the national economy.