Saruvash resigns from Pension Office board over transaction with MMA

Saruvash Adam, a board member of Maldives Pension Administration Office (MPAO), has resigned from the board on Wednesday over the controversial financial transaction with the central bank, Maldives Monetary Authority (MMA). 

Last week, MPAO’s board approved a decision to sell a government bond in the secondary market in collaboration with the central bank. The move has garnered huge backlash with money describing it as equivalent to printing money. 

Saruvash, who was on the MPAO board as a member representing private sector, announced his resignation via a post on X on Wednesday.

I have resigned from the Pension Board after the decision to proceed with the MMA-financed bond.
I believe it raises serious legal, fiduciary, and economic concerns, and I chose to step down to uphold the principles of prudence, integrity, and institutional independence.

— Saruvash Adam (@saruvash) October 22, 2025

In his post, Saruvash attributed his resignation to the board’s decision to proceed with the MMA transaction. He added that he decided to step down to uphold the principles of prudence, integrity, and institutional independence.

Saruvash, who has extensive experience in the field of finance, said the transaction raises serious legal, fiduciary and economic concerns.

Saruvash resigned from his post as the Chief Financial Budget Executive at the Finance Ministry in February 2024. At that time, he was also serving as the head of the Fiscal Affairs Department. Prior to that, he had served as the Chairperson of Maldives Inland Revenue Authority (MIRA).

Senior government officials, in unofficial capacity, have confirmed MPAO board’s approval to sell an MVR 2.5 billion government bond in the secondary market through MMA. However, the Finance Ministry has yet to disclose any information regarding the matter through official means.

Some local media, citing a senior official from the Finance Ministry, have linked the transaction to President Dr. Mohamed Muizzu’s recent pledge to settle outstanding payments by the government to private contractors.

Experts, including former president Abdulla Yameen Abdul Gayyoom and former Finance Minister Ibrahim Ameer, have alleged that MMA is investing MVR 2.5 billion in the pension fund and then having the Pension Administration Office invest the money in a government bond – something that is the same as money printing. They believe that the move would negatively worsen the economy and increase inflation and the rate of US Dollars.

Yameen has alleged that the MMA using money in the state reserves to purchase a fiscal tool from MPAO, and not money that is already in circulation. He warned that releasing this money into circulation would have the same effect on the economy as printing new banknotes and releasing it into the economy.

However, President Muizzu has reiterated that MVR 2.3 billion will be paid to private contractors over the 10 days without resorting to printing money.

During his 2023 presidential campaign, President Muizzu vowed he would never print money, as his predecessor had resorted to during the Covid-19 pandemic. He repeatedly reiterated this pledge after taking office, naming avoiding money printing as one of his administration’s crowning achievements.