The dismissal case of Governor of the Maldives Monetary Authority (MMA) Ali Hashim has been referred to the Public Accounts Committee for further review. The Parliamentary Committee on Public Accounts voted on July 1, 2024 to recommend to President Dr. Mohamed Muizzu the removal of Ali Hashim from his position, citing failures in fulfilling the responsibilities associated with the role of MMA Governor. This recommendation follows a detailed examination by the committee, which highlighted critical functions of the central bank including currency issuance, managing exchange rates, advising on monetary policy, and formulating financial regulations.
In their presentation to Parliament, the committee emphasised the importance of fiscal and monetary policies as fundamental pillars of the national economy. They underscored that while fiscal policies guide government expenditure and tax rates, monetary policy directly impacts money circulation and interest rates through the banking system. Despite these critical roles, the committee noted severe shortcomings during Hashim's tenure, coinciding with a period of economic decline.
Key points raised by the committee included allegations that MMA policies inadvertently restricted loan issuance, stalling economic activity, and highlighted inadequate regulation of the domestic market crucial for government revenue. Additionally, the committee criticised MMA's failure to update regulations in response to national security concerns and noted a lack of proactive advice to align with MMA's statutory objectives since November 17, 2023.
In light of these findings, the committee strongly recommended Hashim's removal, advocating for new leadership and reformed monetary policies to navigate the current economic crisis effectively. The Speaker subsequently referred the case to the Public Accounts Committee for further deliberation, as per constitutional provisions granting the President authority to act on Parliament's advice in such matters.
Ali Hashim has held the position of MMA Governor since September 8, 2019, and his dismissal case now hinges on the outcome of the committee's extended review.