No approval for MVR300m loan; issue of taking loan without approval to be investigated

Parliament Council General has said that the MVR300 million budget-support loan, which had already been taken by the government by the time the issue was sent to Parliament Finance Committee for approval, was not included in the state budget; and that the Finance Committee does not have the authority to grant approval for this loan.

Following this advice, the Committee has dismissed the case.

The government had proposed to take a loan of MVR300 million from Bank of Maldives Limited (BML) as budget support, instead of $65 million as previously planned.

Committee Chairperson Dhiggaru MP Ahmed Nazim presented the Council General’s advice to the Committee, and said that the Finance Committee only has the authority to approve of loans which are included in the state budget.

“The case will therefore be returned to the President. It is up to the government to make a decision on whether to send the case to the Parliament,” Nazim said.

Meanwhile, Maldivian Democratic Party (MDP) members called for the investigation of the government taking the loan before the issue was approved by the Committee.

Nazim responded that it would not be fair for the Parliament Committee to commence this investigation, while the case might be sent to Parliament; nonetheless, if an MP submitted the issue, it will be put on the agenda.

The case has since been submitted to Finance Committee by Kulhudhuffushi North MP Abdul Gafoor Moosa, and supported by Bilaydhoo MP Ahmed Hamza. Nazim said that the case will be put on the agenda as per regulations.

Information released by the Finance Committee shows that the loan will cost the government MVR 354,050,000. Repayment of the loan must commence in 2014, at an interest rate of 33%.

The government had signed the loan agreement last May.

All members of the Committee censured the fact that the government had taken the loan without relevant prior approval.

“This is a very serious issue. It is a clear violation of the law which must be investigated,” Gafoor said.

A resolution has also been sent to Parliament by Dhiddhoo MP Ahmed Sameer, calling to take action against the government on the loan issue.