Government to disburse MVR 500 million to local contractors this week

President Dr. Mohamed Muizzu announced that the government will release MVR 500 million to local contractors this week.

Speaking during his visit to Gaafu Dhaalu and Gaafu Alif atoll, specifically at Hoadedhoo, the President highlighted that companies such as Fenaka, RDC, and MTCC still owe significant amounts to contractors they had hired.

According to the President, the process of releasing funds has already commenced, and the Ministry of Finance will distribute over MVR 500 million to numerous small and medium enterprises (SMEs) this week.

“Small companies were contracted for work but were left unpaid for substantial amounts due to the mismanagement of companies like Fenaka, RDC, and MTCC,” he said.

President Muizzu emphasized his administration’s commitment to clearing these outstanding payments before the upcoming Ramadan.

He also noted that, alongside domestic debts, the government is addressing foreign debts without resorting to printing money.

In November of last year, he stated that MVR 6.6 billion had been disbursed to various companies within 51 weeks. Additionally, bills worth less than MVR 5 million and overdue for more than two weeks have been cleared.