Pension Board CEO Submits Resignation Amid Ongoing Pension Fund Bond Controversy

Chief Executive Officer of the Maldives Pension Administration Office (MPAO), Sujatha Haleem, has submitted her letter of resignation to the pension board, the Pension Office confirmed.

The office did not disclose the reason for Sujatha’s resignation, and she has not issued a public statement explaining her decision.

Sujatha’s departure marks the fourth senior-level resignation from the Pension Office in the past five months, amid mounting controversy over a proposed government bond transaction involving the pension fund.

The series of resignations began after the government decided to proceed with a financial arrangement under which the Pension Fund would sell government bonds worth MVR 2.4 billion to the Maldives Monetary Authority (MMA) and subsequently use the proceeds to purchase a government bond valued at MVR 2.5 billion. If implemented, the transaction would increase the government’s domestic debt by MVR 2.5 billion.

In a statement issued on Tuesday, the Pension Office defended the decision, stating that the MVR 2.4 billion government bond investment was made in consultation with advisers involved in developing the long-term investment strategy of the Maldives Retirement Pension Scheme. The office said the transaction would enable the pension fund to build a foreign currency reserve as an investment without purchasing foreign currency directly from the market.

However, economists have raised concerns that the move could further strain the Maldives’ financial position and create additional economic challenges.

Following a pension board meeting in October at which the transaction was approved, board member Ahmed Saruvash Adam resigned on 22 October, citing concerns related to the deal. Chief Financial Officer Hawwa Fajuwa also resigned later that month without providing an official reason. Most recently, the chairperson of the Pension Board stepped down on Sunday, explicitly warning that the multi-billion-rufiyya bond transaction could inflict “significant harm” on the national economy.