MVR 3.3bn in outstanding payments to private contractors settled from Nov onwards

The government has settled MVR 3.3 billion in outstanding payments over the last six months to various private companies awarded government contracts, says President Dr. Mohamed Muizzu.

At his weekly press briefing on Monday morning, President Muizzu said that the government has been clearing both its foreign and domestic debt as a matter of high priority.

He highlighted on how the government settled a USD 500 sukuk and a USD 400 currency swap this month.

He said the government has also been settling outstanding payments to local companies.

President Muizzu said the government settled MVR 3.3 billion in outstanding payments to private companies, most of them pharmaceutical companies and pharmacies, between November 1 last year and April 26 this year.

He added that another MVR 250 million in outstanding payments will be cleared this week.

“We are looking to address the difficulties facing the people as much as possible, to disburse the money owed to the people, and to relieve them of their debt,” he said.

While President Muizzu said that the government had settled MVR 3.3 billion in outstanding payments from November onwards, the government remains tightlipped on the total amount it owes private contractors.

President Muizzu has previously promised to clear all outstanding payments to private companies by Ramadan last year. He failed to deliver the promise, and on October 10, promised to clear it within 10 days.

He last promised to have it cleared by Ramadan this year.

Former President Abdulla Yameen Abdul Gayoom alleges that the government owes over MVR 14 billion in outstanding payments to private companies. However, the exact figure is unclear, as the government refuses to disclose it. The Finance Ministry has also denied Right to Information claims filed to get the figure.