The situation surrounding the Sovereign Development Fund (SDF) in the Maldives is alarming, as highlighted by former Finance Minister Ibrahim Ameer. He revealed that the government has depleted the SDF, leaving a mere USD 18 million remaining. This raises serious concerns about financial management and transparency under President Dr. Mohamed Muizzu’s administration.
In July, President Muizzu announced that his government had deposited USD 65 million into the SDF. This claim now appears misleading, given Ameer’s recent statements. During a press conference organized by the opposition Maldivian Democratic Party (MDP), Ameer urged the current government to reveal the actual balance of the SDF, emphasizing that the dollars have been used up for various expenses, including debt repayment and managing cash flow.
Moreover, Ameer pointed out that funds from the SDF were also allocated to the Housing Development Corporation (HDC) and the State Trading Organization (STO), which raises questions about the government’s spending priorities. It seems that instead of using the fund to invest in sustainable development projects, the government has resorted to using it to cover immediate operational costs.
Former President Ibrahim Mohamed Solih provided some context, stating that at the end of his administration, only USD 2 million was left in the SDF because USD 30 million out of USD 32 million had been wisely invested in Maldivian banks, ensuring that the funds were available when needed. He highlighted that under his leadership, the SDF grew from MVR 1.9 billion at the beginning to over MVR 7 billion by the end of his term.
This stark contrast in the management of the SDF between Solih’s and Muizzu’s administrations raises concerns about the current government’s fiscal discipline and strategic planning. The depletion of the SDF not only reflects poorly on the administration’s financial strategies but also jeopardizes the Maldives’ economic stability in the long run.
