Debt bill: 'Previous administration' a recurrent point of argument in the debate

Parliamentarians, on Sunday, expressed anger while debating on the debt bill submitted to the parliament by the government, citing Maldives’ debt increased due to the actions of the former MDP administration.

The debt bill is among the 37 bills that the government plans to submit in the ongoing session of the parliament. The bill was submitted to the parliament on Tuesday with the sponsorship of Funadhoo MP Mohamed Mamdhooh.

While presenting the bill during Sunday’s parliamentary sitting, Mamdhooh accused the previous administration of withdrawing 40 years worth of loans in the past five years and filling the pockets of its leadership with this money.

“The last MDP administration had the opportunity to incept such a law. They guided the whole nation towards destruction because they really had no sincerity,” he added.

Speaking further, Mamdhooh cited the main purpose of the bill as managing the state’s debt.

Most MPs belonging to the ruling PNC criticized the former MDP administration while debating on the bill.

In this regard, Kaashidhoo MP Muthasim Ibrahim remarked that it was extremely concerning that the state’s debt had risen up to MVR 120 billion from USD 60 billion during MDP’s administration. He also noted that MVR 8 million were printed in new notes and loans were withdrawn from a number of foreign banks.

“There should be somewhere these sums of money have gone during the past term. A comprehensive investigation needs to be conducted on these matters. Companies had not been audited properly during these five years. These are very serious matters,” he stressed.

Central Henveiru MP Ahmed Azan said the bill contains provisions that Maldives crucially needs at present. He added the state debt is at a point where it is beyond the reach of the government.

Azan, underscoring that withdrawing loans was not an issue itself, said actions which follow can result in losses.  

“Corrupt work had been done. Some people became rich. Alongside the backing of the opposition as well, this bill needs to be passed at the earliest,” he added.

The allegations made by pro-government MPs were refuted by MDP MPs who defended the administration.

In this regard, South Galolhu MP Meekail Ahmed Naseem claimed was the government was earning enough revenue to finance obligations. He noted that countries have given the greenlight to refinance major loans that needs to be repaid.

“There is no concern regarding the nation’s economic state. The withdrawal of loans worth 40-years by the president [Ibrahim Mohamed Solih] is being claimed to mislead the public. The former administration has repaid more loans than any other administration,” he added.

Meekail said the current administration’s top priority at present should be to disclose the number of political appointees that have been appointed since assuming office alongside the expenses incurred to pay their salaries – and in this trajectory, stressed the need for the current administration to reduce the number of political appointees.

This was followed by remarks from pro-government MPs claiming MDP was against the bill at hand prompting Kendhoo MP Mauroof Zakir to raise a point of order to refute the claims. Mauroof, adding MDP was in favor bill, accused pro-government MPs of trying to mislead the public.

“We want this bill to be passed as soon as possible and to rid of debt as soon possible,” he emphasized.

During the debate, Mauroof said caution needs to be exercised while passing the bill. He noted that the bill was drafted during the former administration and henceforth, cited the need for a comprehensive review of the bill during the committee stage in order to make amendments to confirm with the policies of the current administration.

Meanwhile, PNC Parliament Group’s Senior Deputy Leader, Baarah MP Ibrahim Shujau said the bill had to be submitted because of the risk any incoming administrations may act as MDP’s administration has.

The debt bill submitted to the parliament includes provisions on:

• Procedure on borrowing loans
• Procedure on managing loans
• Procedure on disclosing details and reporting regarding state debt
• Procedure on providing sovereign guarantee for loans withdrawn by local councils and state-owned companies

Mahmdhooh, who sponsored the bill, cited ensuring long-term sustenance of the nation’s economy as another purpose of the bill. He added the bill will pave the way to assess the impact on the nation’s economy and future before withdrawing loans.

President Dr. Mohamed Muizzu, on Thursday, announced stringent measures to cut state expenditure including cutting down political posts and the cancellation of events planned for this year’s Intendance Day.