The government is trying to pay MVR 100 million to fishermen before Monday out of about MVR 280 million owed for fish catch weighed by the Maldives Industrial Fisheries Company (MIFCO), Fisheries Minister Ahmed Shiyam said today.
Fishermen have been protesting inside the Kooddoo Fisheries Complex since Sunday morning over non-payment for fish bought by MIFCO for three months.
Responding to a question from Hulhudhoo MP Ilyas Labeeb after he was summoned to Parliament over the issue, the Fisheries Minister said outstanding payments for fishermen would be settled before Ramadan. The aim is to clear all payments by March 5, he said.
According to Shiyam, MIFCO earned MVR 395 million for 18,987 tons exported since the current administration took office. However, MIFCO's total cost since November 17 was MVR 435 million, including diesel and ice provided to fishermen on credit.
The government says the daily increase in MIFCO's pending bills and its inability to pay fishing boats were caused by the hiking of the fish purchasing price to MVR 25 per kilo on September 16, 2023. The previous government said the change was made in response to a green light for eliminating tariffs for fish exports to Europe.
But the current government says there has been no indication of duty-free exports so far.
On Monday, the protesting fishermen demanded that the government should clear the outstanding payments by dipping into the state reserve instead of waiting for MIFCO to collect revenue from foreign parties.
During a meeting with the protesting fishermen last night, MIFCO CEO Ahmed Shamah Rasheed proposed dividing the MVR 22 million in the company's accounts between 28 boats docked at the Kooddoo harbor, after which the company would convert USD 3 million due to be collected on Tuesday and use it to make payments on the following day.
After clearing bills worth MVR 105 million before February 26, all outstanding payments would be settled by March 5, he assured.
But the fishermen at the meeting said MVR 22 million would not be enough to even cover food bills for the 28 boats, which were collectively owed more than MVR 60 million.
"The Finance Ministry says there is MVR 470 million in the reserve. So why don't you give it to us [MIFCO] and say that we will deposit it tomorrow," a captain at the meeting proposed, suggesting that MIFCO could reimburse the ministry with USD 3 million due from overseas.
