Siyam: Financial state worsened due to wasteful expenses; theft has to stop to recover

Maldives Development Alliance (MDA)’s President, Meedhoo MP Ahmed Siyam Mohamed states Maldives’ financial state worsens due to wasteful expenses, adding theft of state funds has to stop to recover from the situation. 

The government has opted for various measures to increase revenue and cut down expenditure in light of Maldives’ dire financial state.

Siyam, during an exclusive interview with Raajje TV, said Maldives is the richest country in the nation in terms of per capita income. He attributed the financial state worsening despite this to misuse of funds.

“This current economic crisis we face is due the fact that these funds have been misused. This is why we are unable to repay dues to foreign institutes and why there is a shortage of US Dollars,” he said, while citing the first thing that needs to be done in order to improve the Maldivian economy as stopping theft. 

Siyam accused all former administrations of theft. In this regard, he said all individuals who have served as the president of the Maldives had incepted several companies; something which he alleged was done with the intention of stealing.

“MVR 2 billion is allocated yearly to run these companies,” he added.

Noting Maldives earns approximately MVR 4.5 billion or MVR 5 billion in revenue, Siyam said each administration incepts and operates companies for the sake of obtaining a license to commit theft.

He expressed discontent in this trajectory, citing the act amounts to unlawful theft of taxpayers’ money.

“I am an individual who has developed a lot of classrooms in the Maldives. I can develop a class for MVR 200,000. If the government were to develop it, it is at a cost of MVR 2 million,” he pointed out, as an example of theft.

“Thus, why would the state have any money?” he stressed.

Siyam said the economy will not improve even when taxes are increased if corruption and theft is not stopped. In this regard, he said the economy can only be improved by stopping theft and wasteful expenses.

Maldives worsening financial state prompted the biggest two global credit agencies – Moody’s and Fitch – to downgrade the nations’ credit rating. International financial institutions have called for urgent fiscal reforms as Maldives’ potential to serve its debts looks bleak.