Govt incur MVR 700 mil a month for political posts: Ameer

Former Minister of Finance Ibrahim Ameer on Saturday said the incumbent administration spends MVR 700 million each month on over 2,000 of its political appointees.

Opposition Maldivian Democratic Party (MDP) held a press conference on Saturday, highlighting on the regressing economic conditions of the country, where Ameer criticized the current government, claiming its incompetency has led to the current fiscal vulnerabilities.

He added the state was trying to obscure the truth behind its failures.

Ameer also said the former government managed to settle its debts despite facing the Covid-19 pandemic, which slowed the state income.

He alleged the current government was wasting state funds.

In a presentation shown during Saturday's press conference, Ameer said the current administration's recurrent expenditures were mounting despite limited revenue sources. He singled out the surge in political positions and their remunerations among chief reasons for this expense increment.

Ameer further claimed the remuneration and expenditure of state-owned enterprises (SOEs) have gone up since the new administration took charge, and said payrolls of SOEs have observed at least a 15 percent surge under the current government.

SOE Expenditure (Recurrent)

Fenaka Corporation

by 2023 end: MVR 74 million

now: MVR 84 million

RDC

by 2023 end: MVR 22 million

now: MVR 28 million

WAMCO

by 2023 end: MVR 21 million

now: MVR 31 million

STELCO

by 2023 end: MVR 40 million

now: MVR 44 million

MTCC

by 2023 end: MVR 60 million

now: MVR 65 million

Although President Dr. Mohamed Muizzu earlier promised he will cap political positions at 700 maximum, the significant surge political appointees has drawn criticism from the opposition and public as well.

President Muizzu's government faces further scrutiny for concealing the exact number of political appointees currently, despite repeated demands to reveal the figure.

Although the parliament has made attempts to acquire the total number of political appointees on various occasions, the state has not divulged this information so far.

While several international financial authorities have repeatedly warned of increasing fiscal vulnerablities the Maldives face in the upcoming years, all of them have recommended immediate reforms and cost-cutting measures.

On Thursday last week, President Muizzu formally announced his administration will be looking to reduce the number of political appointees in light of the current fiscal and economic conditions of the Maldives.

He further announced that various celebratory activities will be cancelled in a bid to enhance state's cost-cutting measures.