Fishermen protested at the Maldives Industrial Fisheries Company's (MIFCO) Kooddoo fish factory today over long delays in payment for fish purchased by the state-owned company.
According to videos posted on social media, the fishermen complained of not being paid for fish catch weighed at Kooddoo for more than three months. It is unclear whether a MIFCO official has responded to the complaints.
Fisheries Minister Ahmed Shiyam told Adhadhu today that MIFCO owed about MVR 300 million to fishers and assured that the outstanding payments would be settled by March 5.
"When we looked yesterday, there was MVR 298 million as the backlog. We are working to finish making those payments before March 5," Shiyam said.
Since the fish purchasing price was reduced last week, MIFCO has been paying for fish catch within a week, Shiyam said.
On September 16, 2023, between the first and second rounds of the presidential election, the previous government raised the fish purchasing price to MVR 25 per kilo. The current government reduced the price to MVR 20 per kilo on February 12, 2024.
Shiyam told Parliament last week in response to a question from an MP that MIFCO owed MVR 190 million to fishers.
The government was trying to obtain a loan to make the payments, he said.
Shiyam said there were challenges in securing loans domestically and internationally due to the previous government's fiscal indiscipline and money printing. However, MIFCO and the government were trying to secure the loan, he said.
"Records show that about MVR 190 million at present have not been paid to fishers. The government and MIFCO have been working hard at the request of the President to secure a facility even with a sovereign guarantee," Shiyam said.
Earlier this month, President Dr. Mohamed Muizzu indicated that the launch of the government's development projects could be delayed due to fiscal constraints caused by increasingly high levels of debt.
However, the Economic Ministry said yesterday that the country was not facing a fiscal crisis.
