Payments made, may not be enough for suppliers: Saeed
Saeed said the total amount owed to Fenaka contractors would be MVR 1.4 billion
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By
Ahmed Mizyal
Fenaka Corporation may not be able to pay satisfactorily to the companies they entrust with various works, but it is paying millions of Rufiyaa every month to clear its debts, the company's Managing Director Ahmed Saeed said on Wednesday.
There have been recent cases of non-payment of large amounts of money due to contractors who were awarded various works by Fenaka.
Nineteen contractors held a joint press conference with their complaints in August, and some contractors even staged a protest in front of the Fenaka office with their concerns.
Fenaka held a press conference on Wednesday, and strongly denied the allegations that the company's vendors or suppliers are not getting paid.
"Every month, we always pay. But it could be that the payment is not enough for them," he said.
"But the figures will show that millions of Rufiyaa are always being paid every month”.
When asked about the duration of the outstanding bills, Saeed said the bills that have not been paid will be those that have been given a duration of between one and six years.
"Different agreements will be different. Different people will have different terms," Saeed said.
The president-elect's office said at a press conference last week that the company's debt has reached MVR 4.1 billion.
The office of the president-elect has said that more than MVR 3 billion is owed to suppliers and the debt has grown to an unmanageable level and the company is borrowing in huge amounts to clear it.
Transitional spokesperson Mohammed Firzul said:
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The company's debt stood at MVR 4.1 billion as of last year
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This includes MVR 3.2 billion owed to suppliers
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1,149 suppliers not paid
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Includes MVR 958 million that has been outstanding for more than a year
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The company has taken out loans of MVR 901 million
Saeed said the total amount owed to Fenaka contractors would be MVR 1.4 billion.
“I will repeat, we have always paid the money every month. We have been paying it to the extent that we and they have agreed,” Saeed said.
While the president-elect's office has expressed serious concerns about Fenaka, Saeed said with confidence that nothing has happened during this term that warrants action by the new government.
“We have done things here in accordance with the laws made in Maldives and the policies implemented by Fenaka,” he said.
"There's nothing here, but they can create something [to take action]. There's nothing else."
