Opposition Accuses Gov’t of Hiring Surge and Increased Salary Expenditure

The Maldives Democratic Party (MDP) has accused the government of hiring over 4,500 political employees, resulting in a salary expenditure increase of at least 15 per cent.

At a press conference held at the MDP office today, former Finance Minister Ibrahim Ameer, from the previous government, claimed that the surge includes political employees in state-owned enterprises. Ameer stated that, in the first quarter of this year alone, the number of employees had risen by 8%.

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He also criticised the government for building a new college under the banner of nationalism and hiring 50 consultants. According to Ameer, over 2,000 people have been appointed to political positions and more than 2,500 to various companies.

The MDP has reported that current salary expenditure for government companies is now higher compared to the end of last year, with Fenaka, MACL, MTCC, and Maldivian Airline among the top spenders. The government has yet to disclose the exact number of political employees hired.

Fayyaz Ismail, Chairperson of the MDP, also criticised President Dr. Mohamed Muizzu for his handling of the national bank’s decision to suspend foreign transactions on cards linked to Maldivian Rufiyaa (MVR) accounts.

The Bank of Maldives (BML) had previously permitted up to USD 250 in foreign transactions with its debit and credit cards, and up to USD 750 for Maldivians residing abroad. However, today, the bank suspended foreign transaction allowances for existing and new debit cards linked to MVR accounts and reduced the monthly limit for foreign transactions on standard and gold credit cards to USD 100.

Fayyaz, who served as Economic Minister during the last MDP administration, warned that this abrupt change would negatively impact students and businesses, disrupting payments for various services and goods. He expressed concern that the government may not fully understand the potential repercussions for the private sector.

BML explained that the decision was made due to the high volume of card usage exceeding the foreign currency it could purchase, affecting its ability to support business customers. Karl Stumke, CEO and Managing Director of BML, acknowledged the significant impact on customers but indicated that the changes were intended to be temporary. The bank will review the situation periodically and keep customers informed.

Previously, BML had imposed the foreign transaction limits amid a USD shortage during the Covid-19 pandemic, with criticism over the lack of an increase in the four years since. President Muizzu had promised to lift the limit during his 2023 presidential campaign. Although an increase was announced in January for Maldivian students abroad, the change was not implemented by the February deadline.

Additionally, the BML’s decision to adjust card limits follows a dismissal of Deputy CEO Aishath Nooraddin by the Privatization and Corporatization Board (PCB). Such dismissals require shareholder approval. The bank’s board also experienced changes in January, with all non-executive members initially dismissed, though some were later reappointed.