Committee asks govt to restrict projects to debt-laden companies
The report included several recommendations aimed at preventing similar issues in the future.
The Finance Committee of the Parliament on Tuesday passed a resolution advising the government not to award new projects to companies that owe significant sums of money to the state.
The resolution follows the committee’s review of a report concerning MVR 1.4 billion owed to the Housing Development Corporation (HDC) by various companies. The report included several recommendations aimed at preventing similar issues in the future.
One of the key recommendations is to restrict companies with substantial outstanding payments to the government or state-owned enterprises from receiving new project awards. The committee also recommended introducing measures to bar such companies from bidding for government contracts.
The resolution to direct the Ministry of Finance to implement these measures was approved by a majority of the members present at the committee meeting.
During earlier committee sessions, members raised concerns over companies and their subsidiaries reportedly making profits while owing large amounts to the government. Deputy Speaker Ahmed Nazim specifically highlighted Nasandhura Palace Holdings (NPH), the developer of the Nasandhura hotel, which he stated had not paid rent for land on which the Aqua Vita flats were built in Hulhumalé.
According to Nazim, NPH owes MVR 244 million to HDC, including penalties for non-payment.
The motion to exclude companies with significant unpaid dues from being awarded government projects was proposed by Funadhoo MP Mohamed Mamdooh and supported by Baarah MP Ibrahim Shujau.
