Government did not act on counsel provided over two years: Governor Hashim

Maldives Monetary Authority (MMA) Governor Ali Hashim has said that the country is facing economic troubles because it paid no heed to advice and counsel being provided by the central bank MMA and international financial institutes in the past years.

The Governor made these remarks in a report he submitted to parliament in relation to the Public Accounts Committee's decision to propose his dismissal to the President.

The Committee reached this decision citing failure on the part of MMA to fulfill its duties and obligations at this time when the country is facing economic difficulties.

In response, the Governor said in his report that MMA had provided advice and guidance on preventative measures before the country had faced an economic crisis. He said that even at present, efforts are ongoing to address the economic difficulties with wisdom and foresight.

The Governor further said that work is being conducted to ensure that that the country is prevented from falling into an economic pit and instead, guiding it to a safe place.

"Even in the past two years, in discussions held in the Parliament's Public Accounts Committee, it has been pointed out that there are risks to the economy, and advice was provided to the government and other related agencies on the importance of taking preventive action."

Hence, the Governor said, one of the main reasons for the economic difficulties faced and the risk of facing an economic crisis have arisen due to failure to pay heed to the advice provided by MMA and other international financial institutions. Another reason is the failure to implement the fiscal discipline which MMA has advocated for for many years.

He assured that full cooperation and support will be provided by himself and MMA in this instance where the entire State needs to work as one to overcome the economic difficulties presently faced by the country.

The report also noted that they are cooperating with the reform agenda that the government is enforcing in relation to the current economic troubles. They mentioned that on request from the Ministry of Finance, MMA has changed some of its decisions, and postponed implementation of other initiatives.