Nasheed Warns Using Pension Funds Outside Social Security Is a ‘Grave Mistake’

Former president Mohamed Nasheed has warned that withdrawing money from the Maldives’ pension fund for purposes other than social security would be a “very grave mistake”, amid mounting controversy over a government bond transaction involving the pension system.

In a post on X, Nasheed said the pension fund was established with a clear and limited purpose: to collect 14 percent of an employee’s salary—split equally between employee and employer—and preserve those savings to provide income in old age. He stressed that diverting pension savings for other uses undermines the country’s social security framework.

Nasheed said that after monthly pension obligations are met, remaining funds should be invested in productive and beneficial projects, not used to finance government salaries or other recurrent expenditure. He warned that misusing pension savings risks serious long-term damage to the nation’s finances, adding that the country was “heading towards a pit, blindfolded”.

Pension fundeh ufehdhee vaki khaassa beynumeh fuhdhaan; Vazeefaa adhaakuraa meehunge musaaraige 14% fundah jamaa kuran. Mi 14% akee vazeefaa adhaa kuraa meehaa dhey 7% aai vazeefaa dhey meehaa dhey 7%. Beynumakee e faisaa rahkaakoh, dhoshee umurugai pension ehge gothgai dhinun.…— Mohamed Nasheed (@MohamedNasheed) February 3, 2026

His remarks come against the backdrop of a reported controversial decision by the Maldives Pension Administration Office (MPAO) board to approve a financial transaction with the Maldives Monetary Authority (MMA) in October last year. The deal involves the sale of a government bond worth around MVR 2.4 billion on the secondary market and has triggered public concern over the potential for money printing and fiscal instability.

The bond transaction has also been followed by a series of high-profile resignations from the pension authority. MPAO Chief Financial Officer Hawwa Fajuwa resigned on 5 November without publicly stating a reason. Earlier, on 22 October, board member Saruvash Adam, who represented private businesses, stepped down citing legal and economic concerns related to the bond deal, though he did not provide further details.

Most recently, MPAO Chairperson Ahmed Inaz resigned on Sunday, warning that the multi-billion-rufiyaa transaction could inflict “significant harm” on the national economy. Inaz, a former minister of finance and treasury, said there had been a fundamental breakdown in negotiations over a proposed government bond worth about MVR 2.4 billion.

According to media reports, the pension board has approved the MVR 2.4 billion financial transaction to proceed. However, neither the government nor the MPAO has made an official announcement confirming the approval.