Parliament accepts bills to mandate public financial disclosures

Parliament has accepted two bills submitted by Galolhu North MP Mohamed Ibrahim (Kudu) that seek to increase transparency by requiring public disclosure of financial statements from members of independent institutions and senior officials of state-owned enterprises (SOEs).

Both bills- one amending the Audit Act and the other the Corporatization and Privatization Act were accepted in Parliament today with unanimous vote from 50 members of the ruling People’s National Congress (PNC) super-majority Parliament.

The bill amending the Audit Act was referred to the Independent Institutions Committee, while the amendment to the Corporatization and Privatization Act was sent to the Public Accounts Committee for review.

Under the proposed amendment to the Audit Act, members of independent bodies and those holding independent positions would be required to submit financial statements to the Auditor General within 30 days of assuming office, and again within 90 days of completing one year in office.

Failure to comply within the stipulated period would incur a fine of MVR 5,000.

Meanwhile, the amendment to the Corporatization and Privatization Act would make it mandatory for the chairperson, managing directors, chief operating officers, and deputy managing directors of state-owned companies to submit their financial statements to the Auditor General.

All submitted financial statements would need to be certified by an auditor licensed by the Maldives Institute of Chartered Accountants (CA Maldives).

The two bills form part of MP Mohamed’s wider anti corruption reform package, which also includes a constitutional amendment passed last week, requiring ministers to make their financial statements public.