Development Bank racks up over MVR 400,000 in unpaid rent for office in six months

Development Bank of Maldives (DBM) has not made any rent payments so far for the office space it occupies in the Allied Building for its operations.

DBM, which is based at State Trade Organization (STO)’s Allied Building, was inaugurated on November 16, 2024. STO is owed MVR 75,892 per month as rent payment for the premises.

Main opposition MDP’s lawyer, Ahmed Mauroof, submitted a Right to Information (RTI) request seeking the details of payments DBM has made to STO as monthly rent.

In response, STO said the company has not received any rent payments from DBM for any month. That is MVR 455,352 in unpaid rent when considering the six-month span since the inauguration of the bank.

Although DBM has not formally commenced its services, Finance Ministry has reported that a total of MVR 6.5 million has been spent on the bank as of March 25^th.

The bank has also been plagued by resignations. Noel Gregor Paterson-Jones, an international banking expert, was appointed as the Bank’s Chief Executive Officer on August 26^th. He resigned seven months into the post, on March 23^rd. Ahmed Ali, Ma. Wayside, Flat 805, a board member, also resigned a month later, on April 24^th.

The delay in fully operationalizing DBM months after its establishment has sparked public criticism, particularly given the substantial amount of money spent on the bank. However, Economic Minister Mohamed Saeed has affirmed that the bank’s rollout was progressing according to schedule.

Development banks are financial institutions with the focus of introducing new businesses, industrial activities, and other economic initiatives in countries.

The banks are primary lenders for new ventures with loan facilities to set up businesses and activities as well.

According to the government, DMB was formed in alignment with the government’s policies, including the funding of infrastructure projects, investing in sustainable economic and social development, addressing the difficulties associated with financing PSIP projects through syndicated financing, and fostering a greater interest in maintaining foreign exchange within the nation's banking system.