Amendments to mandate asset disclosure for ministers, MPs, CEOs

Maldivian Democratic Party (MDP) MP Mohamed Ibrahim (Kudu) of Galolhu North constituency has on Monday put forth proposed amendments to parliamentary regulations, aiming to enforce the disclosure of assets and wealth by Members of Parliament (MPs), ministers, and heads of companies upon assuming office.

In a letter addressed to Parliament Speaker Abdul Raheem Abdullah, MP Kudu outlined the proposed changes and elaborated on the rationale behind strengthening existing financial statement requirements. He emphasized the necessity of these amendments to enhance transparency and accountability concerning the assets, businesses, and financial interests of individuals holding public office and senior positions within government-affiliated companies. The letter further suggests harmonizing the regulations pertaining to financial statements across various positions.

1. Members of Parliament

Currently, Article 76 of the Constitution obligates MPs to disclose their assets and liabilities. The existing rules for filing financial statements are detailed in Articles 74, 75, 76, and 77 of the Rules of Procedure of the Parliament. Under these rules, MPs are required to submit annual financial statements to the Secretary-General of Parliament, with the initial statement due one year after their election and swearing-in.

MP Kudu expressed concerns about the current timeline, asserting that members should declare their assets and business interests at the commencement of their term. Consequently, his proposed amendments to the Financial Statement Rules include:

• Every Member of Parliament shall submit to the Secretary-General a statement of assets, money, business interests, debts, and liabilities within 30 days from the date of taking their oath.

• The statement of assets and liabilities shall be verified by a licensed auditor holding an audit license issued by the Institute of Chartered Accountants of the Maldives.

2. Ministers

Article 138 of the Constitution similarly mandates ministers to disclose their assets and liabilities. Each Cabinet member is presently required to submit an annual statement of assets, financial statements, business interests, and debts to the Auditor General. However, there is no specific deadline or date for submission, nor is a statement required within a defined period upon the commencement of a ministerial term.

MP Kudu conveyed his disagreement with this arrangement in his letter, advocating for ministers to disclose their holdings and business interests at the outset of their term. The proposed amendments for Minister statements include:

• Every member of the Cabinet shall submit to Parliament and the Auditor General a statement of assets and liabilities, accounts of assets, business interests, and liabilities once a year.

• A "year" is defined as the date on which one year expires from the date on which the person assumes office in the Cabinet.

• For the purpose of filing the statement of assets and liabilities, the Cabinet member shall submit the statements described in the article to the Parliament and the Auditor General within 90 days from the date of completion of the one-year period.

• The financial statements must be validated by a certified auditor holding an audit license granted by the Institute of Chartered Accountants of the Maldives.

• If the statement of assets and liabilities is not submitted within the prescribed period, a daily deduction from the Minister's salary shall be applied for each day until submission.

• In addition to submitting an annual statement, every person appointed as a member of the Cabinet shall submit an initial statement of assets and liabilities to Parliament and the Auditor General within 30 days from the date of assumption of office.

3. Members of Independent Institutions and Persons in Independent Positions

MP Kudu noted that the regulations governing members of independent institutions and individuals in independent positions are fragmented across various laws under the Constitution. To streamline this, he proposed amendments to consolidate these requirements under a single law, rather than amending numerous articles or laws.

The proposed amendments encompass 27 individuals, including heads of various institutions such as the Judicial Service Commission, Election Commission, Civil Service Commission, and Anti-Corruption Commission, as well as the Prosecutor General, the head of the National Drug Agency, the Police Commission, and the Prisons Commissioner.

The proposal mandates these institutions and senior officials to submit their financial statements within one year from the date of assuming office and empowers the Auditor General to publicly release these statements. Furthermore, the amendment requires individuals in such influential positions to submit a statement of assets, money, business interests, debts, and liabilities within 30 days of taking office, with a proposed fine of MVR 5,000 for non-compliance.

4. Heads of Government Companies

The proposed amendments also address the submission and acceptance of financial statements from individuals in leadership roles within State-Owned Enterprises, State-Affiliated Companies, Businesses, and Commercial Institutions, specifically targeting Chairpersons, Chief Operating Officers, Managing Directors, and Deputy Managing Directors. Key proposals include:

• Persons in such positions shall be required to submit an annually verified statement of assets and liabilities by a licensed auditor holding an audit license issued by the Institute of Chartered Accountants of the Maldives.

• Within 30 days of assuming office, these individuals must disclose assets, business interests, liabilities, and debts held at the time of assumption of office.

• A fine of MVR 5,000 is proposed for violations of this order.

It is noted that the financial statements of the members of the 20th Parliament were submitted earlier this month. Under current regulations, MPs who fail to submit their financial statements within the stipulated period are initially granted an additional 15 days. Continued non-compliance results in the member's name being announced in Parliament, restricting their attendance at meetings until submission. Additionally, a daily deduction from the member's salary is applied until the financial statement is submitted. During the ongoing parliamentary session, five members reportedly did not disclose their financial statements within the required period.