Minister Saeed reveals that the past government had MVR 7 billion in unpaid dues to companies at the end of their term. The current administration has undertaken efforts to repay these, with the amount having been brought down to MVR 3.5 million in two months.
Minister for Economic Development and Trade Mohamed Saeed said on Thursday night that when the current administration was sworn into office, the state had over MVR 7 billion in unpaid dues to businesses.
He said this in the “Ahaa Forum” held last night, welcoming citizens to ask the ministers any question they wish.
Saeed said in the first public forum, held in Sultan Park, that the unpaid bills by the government had been close to MVR 7 billion when they took over administration. They have since worked to reduce this amount, bringing it down to MVR 3.5 million in the past two months.
“The state is in debt. In addition to that, we have debts of MVR 122 billion piled up. We came into government when the fiscal situation [of the country] happened to be very delicate,” Minister Saeed said.
Saeed said they will prioritize small businesses and will work to build them up. He said even though the state’s debt was high, they will work to provide opportunities for small businesses so that the economy can be rebuilt.
“We will change these circumstances. Not too late too. God be willing, you will be able to see changes very soon,” Saeed said.
Small and medium sized businesses suffer greatly when the payment is not made within the set deadline after projects contracted by the government is completed. A number of businesses have expressed their concern over this matter.
In addition to government offices, state-owned businesses as well have huge unpaid debts to companies. FENAKA’s outstanding dues to businesses stood at MVR 1.4 billion, according to data released by the company in November last year.
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