The board of Maldives Pension Administration Office has approved investing in a 2.4 billion rufiyaa bond issued by the Ministry of Finance. This decision was made at a meeting held yesterday after appointing a temporary chairperson to the board, following the resignation of several office officials.

Although the Pension Office has not disclosed official details, media reports indicate the transaction will be conducted through the Maldives Monetary Authority (MMA). Since the pension fund currently lacks sufficient cash, the plan is to sell a 2.4 billion rufiyaa T-bill previously purchased by the pension fund to the MMA, then use those proceeds to buy the government’s new bond. This is reportedly being done to help the government settle state expenses.

Major disagreements emerged within the Pension Office as this investment approached approval. Pension Board Chairperson Ahmad Eenaz resigned yesterday due to dissatisfaction with the transaction. Following his departure, applications were opened for the chairperson position, and the bond purchase was approved after temporarily arranging someone to chair the meeting.

Additionally, during last year, Pension Board member Ahmad Saruvash Adam and the office’s CFO Hawwa Fajuwa also resigned over disagreements stemming from this transaction. Saruvash, who previously held a senior position at the Finance Ministry, stated that obtaining money and investing this way through the MMA is akin to indirectly printing money.