Maldives Struggles with Rampant Corruption in Finance Sector
A Plague on the Nation: Corruption in Maldives
The Maldivian government has long been plagued by corruption, a problem that has only intensified since the country transitioned to democracy. The island nation’s ranking on Transparency International’s Corruption Perceptions Index (CPI) remains abysmal, with 137th place out of 180 countries worldwide.
Lack of Accountability and Transparency
The lack of accountability and transparency in the government’s actions is a significant contributor to this issue. In recent years, several high-profile corruption cases have come to light, including the MMPRC scandal, which saw state-owned assets being sold off at significantly undervalued prices. Despite the establishment of the Asset Recovery Commission, no efforts have been made to recover the lost assets.
Examples of Corruption:
- The MMPRC scandal
- Undisclosed compensation payments
Secrecy in Government Transactions
The government’s handling of compensation payments is also shrouded in secrecy. Last year, they paid out nearly MVR 100 million to various parties, but details of these transactions remain undisclosed.
Failure to Repeal Corrupt Laws
Moreover, the current administration has failed to follow through on promises to repeal laws that facilitate corruption. The UN and Transparency International reports have highlighted the prevalence of corrupt practices among high-ranking government officials, including abuse of power, bribery, nepotism, and procurement fraud.
Examples of Corrupt Practices:
- Abuse of power
- Bribery
- Nepotism
- Procurement fraud
Consequences of Corruption
The consequences of this widespread corruption are dire. The government has spent MVR 1.6 billion in compensation over the past four years alone, largely due to the cancellation of contracts executed illegally.
Normalization of Corruption
Experts warn that the normalization of corruption within the system is a major obstacle to addressing this issue. The Anti-Corruption Commission reports that corruption is prevalent in government and government-owned companies, even in small matters.
Examples of Corrupt Practices in Government:
- Rigged tender processes
- Expedited payments for contractors
International Recommendations
International organizations have repeatedly highlighted the extent of corruption in Maldives and recommended measures to curb it. However, despite these efforts, the President has downplayed the issue, suggesting that identifying its causes will take time.
The People’s Role in Addressing Corruption
Ultimately, it is up to the people of Maldives to decide how to address this pervasive problem. Until then, corruption will continue to plague the finance sector and undermine the country’s progress.