Parliament passes resolution to bar debtors from govt projects

The Parliament on Tuesday passed a resolution urging the government not to award new projects to companies that owe significant sums of money to the state or to government-owned enterprises.

The decision follows the Finance Committee’s approval of a report addressing MVR 1.4 billion in outstanding dues to the Housing Development Corporation (HDC). One of the key recommendations in the report is to prevent companies with large outstanding debts from being awarded new projects or participating in the bidding process for future ones.

During committee deliberations, members raised concerns over companies and their subsidiaries continuing to secure profits while failing to settle long-standing debts to state entities.

Deputy Speaker and Dhiggaru MP Ahmed Nazim highlighted the case of Nasandhura developer NPH, which has not paid rent for the land on which the Aqua Vita flats were constructed in Hulhumalé. Nazim stated that the outstanding amount owed by NPH to HDC, including penalties, totals MVR 244 million.

Funadhoo MP Mohamed Mamdooh proposed the motion to exclude private companies with significant unpaid dues from receiving government contracts. The proposal received support from Baarah MP Ibrahim Shujau.

The resolution was passed during Tuesday's Parliament session.