The Maldives: Muizzu claims a “financial coup;” Opposition debunks it

Virendra Pandit

New Delhi: Bangladesh witnessed a “coup” in July, barely seven months after parliamentary polls returned Sheikh Hasina Wajed to power. Now, India’s other neighbor, the Maldives, may also witness political instability just 10 months after its general elections.

For, the Maldives’ pro-China President Mohamed Muizzu, elected in November 2023 on an anti-India plank, has accused the opposition parties of attempting to stage a “financial coup” and announced that all those behind the “plot to topple his government” would be brought to justice, the media reported on Tuesday.

The Opposition has, however, debunked his claims and counter-claimed that the coup would come from within the President’s own administration.

The controversy erupted on Sunday when the Bank of Maldives Ltd (BML) suspended foreign transactions for existing debit cards and new debit and credit cards linked to MVR accounts and lowered the monthly standard and gold credit card limit to USD 100.

However, it reversed the decision within hours, saying it was based on instructions from its regulator, the Maldives Monetary Authority (MMA), “The Edition” news portal reported.

Addressing his party People’s National Congress (PNC) meeting on Monday night, Muizzu said that he was trying to resolve this issue, and added that the bank decided against his advice, the portal reported.

The President said that many had questioned why a government-majority holding bank had decided against the government’s advice. However, most people were unaware that BML’s Board of Directors does not have a government majority at this time.

“As of now, there’s only four government directors there. The remaining five directors are not government-aligned. So, we don’t have a majority yet. We have nominated two directors, but it will take a couple of weeks for them to be appointed through the existing procedures there. Even though the Chairman has not been appointed yet, the name has been sent,” he was quoted as saying.

“However, from amongst private directors, Champa Mohamed Moosa and Hussain Afeef offered a lot of assistance. It is through their help, that we were able to revoke (the BML’s decision) by evening,” he said.

Muizzu, who came to power on an anti-India plank in November 2023, and also heads the ruling PNC, alleged that this was a “calculated coup” attempt by some people and added that police were investigating the matter.

“What happened here, anyone of sound mind will be able to join the dots when you think about it. This was doubtless an attempted coup,” he said.

Reacting to his claims, the main opposition Maldivian Democratic Party (MDP) chairperson Fayyaz Ismail said the events show a coup brewing within President Muizzu’s own administration and not one instigated by outside forces, the “Sun” news portal reported.

On Tuesday, Fayyaz called the President’s allegations ridiculous.

“What we see are the faultlines within the Muizzu administration. That there’s trouble brewing within. And we see a coup coming from within in the days ahead,” he said.

Fayyaz said the comments regarding the BML made by top government officials, including President Muizzu himself, were enough to destroy the credibility of the country’s entire financial system.

“When the head of state alleges that the bank he controls conspired with the opposition to stage a coup, this is a huge allegation against the Bank of Maldives before the global financial community,” he said.

Fayyaz said that it would result in a loss of confidence in the bank among international financial institutions and banks.