Public Accounts Committee declines to review complaint on corporate governance regulation changes

The Public Accounts Committee of Parliament has decided not to review a complaint submitted by a non-governmental organisation regarding changes to corporate governance regulations that now permit the appointment of political figures to the boards of banks and financial institutions.

The complain was submitted by Maldives Financial Service Association.

During today's meeting of the Public Accounts Committee, the matter was brought forward for member's opinions. Speaking on the matter, Kelaa MP Abdulla Shareef moved to dismiss the case, and it was supported by Funadhoo MP Mohamed Mamdhooh.

However, opposition party Maldivian Democratic Party (MDP) member Dr Ahmed Shamheed said that the case can be heard by the committee, and was supported by another MDP member, Abdul Ghafoor Moosa (Gapo).

Despite this, Chairperson of the committee Qasim Ibrahim said that since the complaint concerns regulations, it would have to be reviewed by the Regulation Review Committee of the Parliament.

Speaking on the matter, Dr Shamheed said that politicising the boards is a serious concern and that the Public Accounts Committee should take initiative to look into the matter.

"There is no harm to the government from this yet. Keeping things as they are, we need to move forward with professional people on the boards," he said.

Dr Shamheed said that as it stands, people in political positions in the Finance Ministry can also be appointed to the boards of the banking sector and other financial companies.

MP Ghafoor also added that central banks should run very independently and that banks and central banks should not be mixed up with political affairs.

"The other thing is that the central bank is directly within the mandate of this committee. When such major changes are brought to it, we have to be very clear about it," he said.

While the opposition members were expressing their concerns, Chairperson Qasim put both motions up for a vote, with majority members of the committee in attendance voting to dismiss the complaint. As such, the case was decided to be forwarded to the Regulation Review Committee.