Lack of applicants prompts reannouncement seeking chairperson for Pension Office

Applications have been reopened for Maldives Pension Administration Office (MPAO)’s board chairperson due to lack of sufficient applications following the initial announcement.

The vacancy arises from the resignation of former chairperson Dr. Ahmed Inaz over disagreement with the government’s financial policies.

The Pension Office, responsible for safeguarding and managing public retirement funds, first advertised the position on February 2. In an announcement on Tuesday, the Office said the application process is being relaunched due to an inadequate candidate pool. Individuals who applied previously must resubmit their applications to remain in consideration.

According to the announcement, the selection process will comply with the law. In this regard, a selection committee will shortlist three candidates, whose qualifications and eligibility will then be verified by the Capital Market Development Authority (CMDA). Ultimately, it is the President who will make the appointment.

Applicants must hold at least a bachelor’s degree in economics or law and have professional experience in pensions or investment management.

Interested candidates are requested to submit their applications and supporting documents via email before 13:00pm next Tuesday.

Several senior officials from MPAO resigned following plans sell in the secondary market MVR 2.4 billion in treasury bonds invested in by the Maldives Retirement Pension Scheme and then invest in an MVR 2.4 billion treasury bond with dual currency – MVR and USD – returns.

The proposal prompted economic experts to warn it would have the same implications on the Maldivian economy as money printing.

Other officials who resigned alongside Inaz included Chief Executive Officer Sujatha Haleem, Chief Financial Officer Hawwa Fajwa, and board member Saruvash Adam, who represented the private sector.

Regarding this transaction, the Pension Office stated on February 3 that the Ministry of Finance had proposed investing MVR 2.4 billion in a "dual currency" treasury bond, designed to generate returns in both Maldivian Rufiyaa and US Dollars.

The Pension Office highlighted that a key benefit of this investment is that it would create a foreign currency reserve within the Pension Fund without having to buy currency from the open market. Additionally, the plan would allow existing treasury bills to be converted into long-term bonds, extending the portfolio’s average duration and boosting overall returns.

Dr. Inaz explained that his resignation stemmed from concerns that securing funds through the MMA for the transaction could be economically harmful under current circumstances. The Pension Office, however, stated on February 3 that the Ministry of Finance proposed a "dual currency" treasury bond designed to yield returns in both Maldivian Rufiyaa and US Dollars. The office argued that this would allow the fund to build a foreign currency reserve without purchasing currency on the market while also increasing returns by extending the portfolio’s average duration.

Saruvash expressed a differing view, telling local media that the economy currently faces high liquidity, making a "mop-up" of excess currency necessary rather than further injections. He warned that increasing the money supply through such transactions could pose significant inflation risks.

Notably, MDP’s North Galolhu MP Mohamed Ibrahim has submitted a resolution to the Parliament seeking the its position on the matter, alleging that the investment deviates from established procedural norms.