Parliament Committee Recommends Removal of Central Bank Governor

The Public Accounts Committee of the Parliament has passed a motion to advise the President to remove Ali Hashim from his position as Governor of the Maldives Monetary Authority (MMA).

The motion, submitted by Deputy Speaker and MP for Dhiggaru constituency Ahmed Nazim, was presented under Article 6.3 of the MMA Act.

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Nazim argued that Hashim has failed to fulfil his responsibilities, particularly in guiding the MMA to play a crucial role in averting an economic crisis.

Nazim highlighted the current administration’s efforts to implement an economic reform agenda and enact new laws to support its policies.

“However, as the country’s economy has deteriorated to a point where it’s difficult to recover from, the MMA has failed to fulfil its objectives under the MMA Act. MMA’s monetary policy is not functioning efficiently.” he said

According to Nazim, Hashim’s policies limited the amount of loans financial institutions could provide to individuals, encouraging banks to keep their reserves at the central bank. This, he said, resulted in decreased currency circulation and slowed economic activity.

He also criticised the MMA for failing to regulate the domestic market effectively, particularly at a time when the government relies on it for finance.

Nazim further claimed that, according to the Ministry of Homeland Security and Police, the MMA’s failure to update its regulations has hindered efforts to prevent crime. He asserted that Hashim had not done enough to advise the current administration on meeting the objectives stipulated in the MMA Act.

“This is a time that calls for the MMA to change its monetary policy. I am of the opinion that the central bank needs fresh and energetic leadership,” Nazim said.

The motion to remove Hashim was passed with a majority of committee members supporting it. The motion will now be notified to the Parliament floor and sent back to the committee, after which Hashim will be given a five-day notice to respond to his impeachment.

Hashim was appointed as Governor on 8 September 2019 by former President Ibrahim Mohamed Solih. He also served as Minister of Finance between 2008 and 2010 under the administration of former President Mohamed Nasheed. In October last year, Hashim assumed the role of Chair of the Boards of Governors of the IMF and World Bank for the year 2024.