Pension Office CEO Sujatha Haleem has resigned following the board’s approval of a MVR 2.4 billion government bond transaction proposed by the Muizzu administration. Her departure marks the fourth high-profile resignation linked to this controversial decision.
Earlier this year, on February 1, Board Chair Dr. Ahmed Inaz stepped down. In October, board member Saruvash Adam resigned, followed by CFO Hawwa Fajuwa in November. All departures were driven by concerns over the same transaction, which critics warn could amount to indirect money printing.
The controversy began in October when the Maldives Pension Administration Office (MPAO) board approved a financial arrangement with the Maldives Monetary Authority (MMA). Under the deal, a government bond worth MVR 2.4 billion would be sold on the secondary market. Economists and the public quickly raised alarms, warning that such a move could fuel money creation and further destabilize an already fragile economy. The decision triggered a series of resignations from within the institution.
Those who resigned cited a lack of a sustainable solution despite extensive discussions. They argued that raising such a large sum through the MMA could have serious economic consequences, given the Maldives’ current financial situation.
Opposition leader Ismail Zariyand also voiced serious concerns. He noted that if the Pension Office were using existing pension reserves—with proper board approval—to purchase government securities, it would align with the prudence and liquidity mandates of the 2023 Statement of Investment Principles.
However, if the MMA were injecting newly created liquidity or facilitating fiscal financing, it would amount to debt monetisation, raising the risk of inflation and undermining monetary independence.
Zariyand added that as of the CEO’s resignation, the MVR 2.5 billion government bond investment had not been disbursed. Without a functioning board or CEO, such a disbursement is procedurally impossible, and moving forward would violate MPAO’s 2023 investment rules.
The resignations and controversy highlight not only internal resistance within the Pension Office but also the broader risks to the Maldives’ financial stability and public trust. Experts warn that if the government proceeds without addressing these concerns, it could jeopardize the nation’s largest independent pension fund.
