President Muizzu Announces MVR 500 Million Disbursement to Local Companies

President Dr. Mohamed Muizzu has announced that the government will begin disbursing MVR 500 million to local companies next week, as part of an effort to address long-standing payment delays affecting private entities contracted for development projects.

The announcement was made during the President’s three-day visit to Gaafu Alifu and Gaafu Dhaalu Atolls, where he emphasized the administration's commitment to supporting local businesses, particularly small and medium-sized enterprises (SMEs). Speaking in Hoandehdhoo, President Muizzu assured residents that this payment would provide much-needed financial relief to companies impacted by years of delays.

The MVR 500 million payment is part of a broader initiative to settle an inherited debt of MVR 9.9 billion owed to private companies. President Muizzu highlighted that many of these delays involved state-owned enterprises like FENAKA Corporation, Road Development Corporation (RDC), and the Waste Management Corporation (WAMCO). He affirmed that the government aims to complete these disbursements before Ramadan, alleviating financial challenges for affected businesses.

President Muizzu also addressed the economic hurdles faced by his administration, including a state debt of nearly MVR 200 billion and a restrictive budget that has delayed or suspended multiple projects. Despite these challenges, the administration has already disbursed approximately MVR 6.6 billion during its first year in office, demonstrating its commitment to stabilizing the financial landscape and advancing development.

This initiative underscores the government’s resolve to rebuild trust with private contractors and ensure the timely completion of key infrastructure projects critical to the nation’s growth.