The administration will commence disbursing approximately USD 32.4 million next week to local companies contracted for various projects, President Dr Mohamed Muizzu has revealed. This payment represents a portion of the total amount owed to private entities that have successfully completed their projects.
The announcement was made during President Dr Muizzu's tour of several islands in Gaafu Alifu and Gaafu Dhaalu Atolls, as part of a three-day visit.
In his address to the residential community of Hoadedhoo, Gaafu Dhaalu Atoll, President Dr Muizzu reassured local businesses by confirming that the government will begin disbursing funds to various companies. This move marks a significant step in supporting private entities during financially challenging times, he said.
President Dr Muizzu highlighted the challenges faced by his administration due to the 2024 state budget, which he stated was not formulated to allow his incoming administration to carry out developmental work. The budget was designed by the outgoing administration to create operational difficulties for his team, he asserted.
President Dr Muizzu clarified that numerous developmental projects had to be suspended due to budget constraints, resulting in significant delays to ongoing efforts. Citing the financial challenges faced by many local private entities, the president assured that the government would commence payments next week to companies contracted for various projects.
"Next week, the government will commence disbursing approximately USD 32.4 million to Maldivian companies, including small and medium-sized enterprises. Numerous companies have completed projects without receiving due payment from the government," he stated.
Some of these private companies had been contracted by state-owned enterprises, including Fenaka Corporation Limited, Road Development Corporation Limited (RDC), and Waste Management Corporation Limited (WAMCO), which had failed to make the necessary payments, according to President Dr Muizzu. The administration is working to complete disbursing all due payments before the commencement of the fasting month of Ramadan, he assured.
Upon assuming office in November 2023, President Dr Muizzu’s administration discovered that the state’s debt amounted to approximately USD 12.9 billion, with around USD 583.6 million owed to local private companies. During its first year in office, the government disbursed approximately USD 428.1 million.
President Muizzu's visit to Hoadedhoo is part of his ongoing three-day tour of nine islands, which includes visits to Nadellaa, Vaadhoo, Fiyoari, and Rathafandhoo in Gaafu Dhaalu Atoll and Kanduhulhudhoo, Nilandhoo, Maamendhoo, and Dhevvadhoo in Gaafu Alifu Atoll.