President Dr. Mohamed Muizzu has announced that the government will begin disbursing USD 32.4 million next week to local companies contracted for various projects. This payment represents a portion of the outstanding amount owed to private entities that have completed their contracted work.
The announcement was made during President Muizzu’s visit to Hoadedhoo in Gaafu Dhaalu Atoll, as part of his three-day tour of islands in Gaafu Alifu and Gaafu Dhaalu Atolls. Addressing the community, the President highlighted that the upcoming payments mark a significant step in supporting local businesses, particularly small and medium-sized enterprises, amid challenging financial circumstances.
President Muizzu acknowledged that his administration has faced considerable financial constraints due to the 2024 state budget, which he claimed was designed by the previous administration in a way that restricted the new government’s ability to implement developmental projects. He noted that several projects had to be suspended due to budget limitations, causing delays in key initiatives.
“Next week, the government will begin disbursing USD 32.4 million to Maldivian companies, many of which completed projects without receiving their due payments,” President Muizzu stated, reaffirming his commitment to resolving these financial obligations.
The President noted that state-owned enterprises, including Fenaka Corporation, Road Development Corporation (RDC), and Waste Management Corporation (WAMCO), were among the entities that had failed to make payments to contracted companies. He assured that his administration is working to complete the disbursement of all outstanding payments before the start of Ramadan.
Since assuming office in November 2023, President Muizzu’s administration has uncovered a national debt of USD 12.9 billion, with approximately USD 583.6 million owed to local private companies. In the first year of his administration, around USD 428.1 million has already been paid out to settle debts.
President Muizzu’s tour of the southern atolls includes visits to nine islands, such as Nadellaa, Vaadhoo, Fiyoari, and Rathafandhoo in Gaafu Dhaalu Atoll, as well as Kanduhulhudhoo, Nilandhoo, Maamendhoo, and Dhevvadhoo in Gaafu Alifu Atoll. The tour aims to strengthen dialogue with local communities and monitor ongoing development efforts.
