SOEs to settle debt to companies before Ramadan, president says
He noted that payments had been steadily processed over the past month.
President Mohamed Muizzu on Tuesday announced that government-owned companies, including Fenaka Corporation and the Road Development Corporation (RDC), will pay a significant portion of their outstanding dues to private companies before Ramadan.
Addressing residents of GDh. Hoandhedhdhoo, President Muizzu stated that companies such as Fenaka, RDC, MTCC, and WAMCO had engaged small private contractors for work earlier this year but failed to settle payments due to financial mismanagement under the previous administration.
“Efforts are being made to clear a large portion of these payments within the next two months, ensuring the dues are settled before Ramadan,” he said.
The president also announced that the Finance Ministry would release over MVR 500 million this week to Maldivian companies for completed government projects. He noted that payments had been steadily processed over the past month.
President Muizzu emphasised his administration's commitment to avoiding debt, refraining from printing money, and fulfilling financial obligations both domestically and internationally while maintaining the value of the Maldivian currency.
The president reiterated his policy of prioritising the nation's interests.
“My policy is a Maldives-first policy, a pro-Maldives policy. Leading the country without dependence on any single nation is essential,” he said.
Fenaka Corporation currently carries a debt of approximately MVR 4 billion. While there were plans to transfer Fenaka under STO management, this decision has since been reversed. Several debt-related cases involving Fenaka and other entities remain pending in the Civil Court, covering agreements made during the tenures of former Presidents Ibrahim Mohamed Solih and Abdulla Yameen.
During his visit to GDh. Hoandhedhdhoo, President Muizzu inaugurated the water and sewerage system for the island. The project, part of a broader initiative funded by the Exim Bank of India to develop water and sewerage infrastructure in 34 islands, includes:
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Installation of five sewerage pump stations and a sea outfall.
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Complete water and sewerage systems across the island.
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Two RO plants with a capacity of 75 tons per day.
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Two water storage tanks with connections established to individual households.
Additionally, an agreement was signed between the island council and the Bank of Maldives (BML) to establish an ATM on the island.
