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Aim of the sovereign fund act is to safeguard the fund: Shujau

Parliamentarian Ibrahim Shujau has emphasised the Sovereign Development Fund Act, submitted to the Parliament, aims to safeguard public money. Shujau made this statement during a recent parliament sitting where the act, proposed by parliamentarian Ali Fazaadh, was under debate.

In his address, Shujau highlighted that maintaining a country's independence and sovereignty requires foreign investors and funding organizations to have confidence in the nation's ability to pay off its foreign debt. He criticised the previous Maldivian Democratic Party (MDP) government for spending from the fund under the guise of compensations due to the fund's lack of legal authority. Shujau pointed out that while the fund had USD 100 million at the end of the Progressive Party of Maldives (PPM)'s tenure, it was nearly depleted by the end of MDP's five-year term.

Shujau noted that one of President Mohamed Muizzu's key pledges is to protect public money. He stated that the submission of this act in the first year of President Muizzu's tenure aligns with this commitment.

Parliamentarian Fazaadh elaborated on the act's objectives, which include establishing an accounting and reporting framework for the Sovereign Development Fund and defining its use through legislation. He emphasized that the act is crucial for reducing the country's debt and increasing its wealth. Fazaadh added that granting the fund legal status would enhance public confidence in its management.

The bill also received support from members of the opposition MDP. Parliamentarian Mauroof Zakir suggested that the bill should be studied and reviewed further at the committee stage.

The Sovereign Development Fund Act has been referred to the Public Accounts Committee of the Parliament for further consideration.