MVR 7 bil owed to contractors in 2024: Ameer

The former Minister of Finance, Ibrahim Ameer has claimed that the outstanding payments to contractors and other businesses in 2024 will be around MVR 7 billion.

During Maldivian Democratic Party’s (MDP) press conference on Tuesday, the opposition had spoken about the government’s budget for the current year.

Criticizing about the budget, Ameer said the current government failed to acquire finances for the budget, including foreign grants. Ameer also accused the government arranged finances from the domestic market, which impacted the currency black market.

The government proposed raising USD 432.9 million, which Ameer said is an unrealistic figure as he believed the current administration failed to acquire the budgeted figure last year.

He further said several businesses were facing ‘bankruptcy’ as government has failed to make payments to them.

“By end of 2024, government owed MVR 7 billion in outstanding payments to contractors and businesses, but usually, the outstanding amount is around MVR 2 billion at the end of each fiscal year,” Ameer commented.

Ameer also accused the current government was constraining private businesses, and further claimed the administration has failed in cutting costs despite its claims. He added that government was executing projects without cashflow management.

He also accused the current administration lacked financial transparency.

The former Finance Minister claimed the current administration would be required to propose another supplementary budget by the end of the current fiscal year, if the current circumstances hold.