Parliament to debate salary deductions for ministers who fail to disclose financial statements

The Parliament is set to debate a constitutional amendment on Monday that would allow for the deduction of salaries from government ministers who fail to disclose their financial statements.

Article 138 of the Constitution currently mandates ministers to declare their assets and liabilities. It specifies that every Cabinet member must submit an annual statement to the Auditor General, detailing their assets, business interests, debts, and liabilities.

North Galolhu constituency MP Mohamed Ibrahim (Kudu), who proposed the amendment, highlighted that the existing article does not stipulate a specific submission period or date, nor does it require a statement within a defined timeframe upon the commencement of a ministerial term.

Kudu's proposed amendments include:

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

• Definition of "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.

• Submission Deadline: Cabinet members must submit these statements to Parliament and the Auditor General within 90 days from the completion of the one-year period.

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

• Salary Deduction for Non-Compliance: 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.

• Initial Statement: In addition to the annual statement, every newly appointed Cabinet member shall submit an initial statement of assets and liabilities to Parliament and the Auditor General within 30 days from the date of assuming office.

• Public Disclosure: The Auditor General shall publicly publish the financial statements.

Kudu also put forward amendments to the Rules of Procedure of the Parliament concerning the submission of financial statements by Members of Parliament (MPs). These amendments would additionally require MPs to publicly disclose their assets and business interests at the start of their term.

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 leads to the member's name being announced in Parliament, restricting their attendance at meetings until the submission is made. Furthermore, a daily deduction from the member's salary is applied until the financial statement is submitted.

Last month, the financial statements of the members of the 20th Parliament were released. Five members submitted their financial statements late, after being granted an extension.

A three-fourths vote of Parliament, equating to 70 out of 93 members, is required to amend the Constitution. The ruling People’s National Congress (PNC) currently holds 75 seats in parliament, while the opposition Maldivian Democratic Party (MDP) has 12 members.