Government to disburse MVR 500 million owed to private companies

07 Jan 2025 | 21:12
President Dr. Muizzu meeting with residents of GDh. Hoadedhdhoo (Photo/President's Office)

President Dr. Mohamed Muizzu stated that the government has started disbursing payments for MVR 500 million owed to private companies for various government-related projects.

This move comes as part of his commitment to settling financial obligations without increasing national debt or printing new money, all while fostering national development.

The announcement was made during President Dr. Muizzu’s visit to GDh. Hoadedhdhoo as part of his ongoing tour of Huvadhoo Atoll.

In his address to island residents, the President emphasized the importance of fulfilling both domestic and international financial responsibilities.

“These are works that were contracted by the government to various people, funds will be disbursed to small and medium enterprises, this was done during the previous months as well,”

President Dr. Muizzu expressed

In addition to the MVR 500 million disbursement, President Dr. Muizzu revealed that efforts are underway to settle outstanding payments owed to private companies by state-owned enterprises (SOEs) before the upcoming Ramadan.

“I am looking to give a large percentage of the payments within the next two months, January and February, before Ramadan arrives,”

President Dr. Muizzu stated

Many small companies contracted by SOEs, such as Fenaka, RDC, MTCC, and WAMCO during the previous administration, have yet to receive payment for completed projects.

The President attributed the challenges in settling these payments to poor management of SOEs in the previous administration.

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