Companies contracted by the government are forced to "beg" for payments after completing their work, local businesses have said, raising fears of facing bankruptcy and having to halt operations.
The Maldives Association of Construction Industry (MACI) and other businesses held a special function with President-Elect Dr. Mohamed Muizzu to congratulate him on Sunday night.
At the event, contractors mainly complained of the outgoing government not making outstanding payments for bills.
As a result of the failure to settle large amounts owed to companies that completed government work, local businesses have lost the confidence of suppliers and face serious challenges, said Ahmed Nashid, CEO of the ADK Group, one of the country's biggest health service providers.
"Even recently life-saving surgeries that we needed to do were delayed as some of our vital supplies stopped. It got to the point where someone had to go and buy the stuff. [I urge] you to clear outstanding payments after assuming office. All industries are in a difficult state," Nashid said.
Swift Engineering Managing Director Saudhullah Hilmy, who spoke on behalf of the construction industry, accused both Maldivian Democratic Party (MDP) governments of neglecting the industry, calling for an assessment to determine the reasons for many contractors going bankrupt.
"People who were in this since their youth, people who never had to beg anyone and lived with dignity are forced to go beg today. A great many contractors that did the state's work, government work, have gone bankrupt. To the point where they cannot stand back up again," said Saudhullah, who was MP for Thinadhoo Uthuru in the 18th parliament.
Payments have been delayed for six months to two years, forcing businesses to "chase after" their dues at various stages, he said.
"We've been unable to meet the Finance Controller at the Finance Ministry. No opportunity was given. We are able to call finance. They don't know what answer to give. How can we manage the company when it's three months, four months," a medium-sized contractor from the industry said, sharing his experiences.
Fish exporters are facing bankruptcy and having to halt operations, an official who spoke on behalf of Ensis Fisheries said.
After the government raised the fish purchasing price, the company has been forced to shut down its fish cannery with 350 employees, which has caused losses of at least MVR 150,000 a day, he said.
"Please solve the destruction of the fisheries industry. What happened when they started buying for more than MVR 12 per kilo after raising the price of fish for votes with a week left [for the election] was the private sector entirely losing the sale of skipjack tuna. MIFCO [government-owned Maldives Industrial Fisheries Company] is unable to pay fishers," he said.
Officials from the Maldives tourism industry also said that the government has not provided adequate cooperation.
"All industries are slipping from the hands of Maldivians. We could offer the knowledge that we have to you. We could only go forward with it with your encouragement. The work that we do, promoting the Maldives, is in truth not accepted, because the government doesn't provide support even when we work towards it," said Let's Go Maldives CEO Mohamed Riyaz.
