Contractors use advance funds for own projects, minister says
The minister also noted that frequent changes to project plans after work has started contribute to delays and cost overruns.
Construction minister Dr Abdulla Muthalib said on Wednesday that several projects in islands are stalled due to contractors misusing advance payments.
The minister made the remarks while addressing parliament regarding ongoing projects under his ministry.
Responding to a question from a member of parliament, Muthalib explained that certain contractors take advance payments and then delay or abandon projects, sometimes returning years later to attempt to resume the work.
"In some cases, contractors use advance payments to fund unrelated business activities instead of progressing the projects they were awarded," said Muthalib. "This practice has resulted in significant financial losses for the state."
The minister also noted that frequent changes to project plans after work has started contribute to delays and cost overruns.
"We are urging all councils to allow projects to proceed as initially agreed upon. Variations introduced during the implementation phase lead to financial losses and make it impossible to complete projects within the allocated budget," he said.
Muthalib emphasised that minimising changes after agreements are finalised would facilitate timely and efficient project completion.
The minister highlighted the need for stricter oversight of contractors and better management of project variations to ensure the success of development initiatives in the Maldives.
