Ministry of Finance releases funds for payment of Committee allowances to MPs

The Ministry of Finance has defied a Court Interim Order not to release funds for the payment of the controversial Committee allowances to the Members of Parliament for their work at the Standing Committees in the People’s Majlis. The Ministry today released the money to the People’s Majlis as affirmed today by the Ministry as well as the Majlis administration.

Following the self-made decision of the Majlis to allot an allowance of MVR 20,000 to each Member for services in Standing Committees, heavy public criticism was followed by a lawsuit asking for a Court Order to withhold the allowances until the matter is resolved judicially. However, the Court Order was undermined the Ministry’s decision to go ahead with the payment of allowances.

Ahmed Mohamed, the Secretary General of the People’s Majlis said today that the money was deposited at the Majlis Budget account today around 2:30 pm. He also said that the process of depositing allowances with the Members salary accounts had already begun. “We have started payment of the allowances”, he said.

Ahmed also confirmed that some of the MPs who had previously made public pledges saying they would not accept the allowances following heavy criticism by the public and NGOs, had changed their minds and asked for the allowance. “Some of the members who had waived their right to the allowance now tell us that they want it”, Ahmed said.

Sun tried to contact Minister of Finance Ahmed Inaz to get a comment on the issue, but he did not answer the phone. Neither the details of the amounts of allowances, nor the reasons why the funds were issued in violation of a Court Order have been stated.

Minister of Finance had previously stated that giving the allowances was not a good course of action, and he had said that the Ministry would release the funds only after consultation with President Nasheed, who had stated that an allowance budgeted by the Majlis could not be withheld by the government.

Standing Committee on Financial Matters at the Majlis had decided that all members would be entitled to Committee allowances amounting to MVR 20,000 per month. The Committee also decided that all MPs would be entitled to back pay of allowances for the seven months of this year from January to July. As such, each MP would get a back-pay lump sum of MVR 140,000. After that, every MP would be paid an allowance of MVR 20,000 every month, which is more than double the average salary of a civil servant. A total of approximately 18 million Rufiyaa would be spent on payment of allowances to MPs.

MPs are entitled to a monthly allowance in addition to their monthly salary, which is set it MVR 62,500. Add the allowance, and an MP would get an approximately equal, or possibly a bigger sum as salary and allowance per month than that received by an average civil servant over a whole year.

Criticism and frustration about the Majlis members’ decision to collect an amount of remuneration which is deemed by many as “outrageously and madly inappropriate” have been constantly voiced. Many are worried that at a time of economic weakness, the Majlis decision is completely inconsiderate of the national interest and the welfare of the people. The government has, for two years, withheld a portion of the lawful wages of civil servants and also a Majlis-budgeted subsidy for fishermen, giving the reason of financial shortage.