Central bank OKs appointment of politicians to finance companies’ boards

The central bank, Maldives Monetary Authority (MMA), has revised regulations to allow the appointment of politicians to the boards of banks, insurance companies and finance companies.

The revision to the Regulation on Corporate Governance for Banks, Insurance Companies and Finance Companies was published on the Government Gazette on Thursday.

It allows for the following officials to be appointed to the boards of banks, insurance companies and finance companies:

• Heads a government ministry or a member of the cabinet
• The head of a state institution established by law
• A person in a key position in any political party

The revision took effect the moment it was published on the Government Gazette.

The revision follows last week’s decision by MMA, now headed by former finance minister Ahmed Munawwar, to make major structural changes within the institution, including appointing five managing directors.

The central bank posted a job vacancy announcement on Thursday.

According to the announcement, the MMA is looking for managing directors in five areas:

• Monetary policy, research and statistics
• Financial stability
• Banking operations
• Corporate services
• Financial sector development

They will receive a monthly salary within the range of MVR 50,000-MVR 55,000, and will be appointed for a five-year tenure.

However, the changes have sparked concern from some, including the Maldives National Party (MNP), which is allied with the ruling People’s National Congress (PNC).