16 healthcare projects cancelled after failing to make progress: Minister Geela
The government has terminated 16 healthcare development projects awarded under the previous administration after contractors failed to make sufficient progress, with authorities now seeking to recover more than MVR 60 million paid in advance.
Health and Family Welfare Minister Geela Ali disclosed the cancellations during Monday's sitting of the People's Majlis, where she responded to questions from lawmakers about delays and financial losses associated with healthcare projects.
The minister said several contracts had been awarded and advance payments released despite physical work failing to begin for extended periods.
The lack of progress eventually led the government to terminate the projects, including the planned development of Ihavandhoo Hospital in Haa Alifu Atoll.
The Ihavandhoo Hospital project was formally canceled in March after authorities determined that adequate progress had not been made despite funds having already been disbursed.
We have been compelled to cancel a substantial number of healthcare projects. Over MVR 60 million has been wasted on contracts awarded in this manner. However, we are currently working through legal channels to recover these funds and ensure all necessary legal procedures are followed,
Minister Geela stated
Deputy Speaker of Parliament Ahmed Saleem said cases involving advance payments are being referred to the Parliament's Finance Committee, which will continue examining the issue.
Minister Geela said the current administration is moving ahead with healthcare development after securing the necessary funding.
She highlighted ongoing work to upgrade health centers across the islands and establish laboratories under what she described as a more structured implementation system.