The government wants to establish a mechanism for paying fishers within 48 hours of weighing fish catch after settling MVR 300 million owed as outstanding payments due to the country's dire finances, President Dr. Mohamed Muizzu said today.
Fishermen have been protesting inside the Kooddoo Fisheries Complex since February 18 over the lack of any payments for three months.
During a visit to Gaaf Dhaal Faresmaathoda, a fisheries hub in the southern atolls, the President urged fishermen to "accept reality." With some boats from the island also taking part in the Kooddoo protest, the President said efforts were underway to resolve the issue.
"When we took over, there was MVR 260 million or so unpaid even then. That MVR 260 [million] has been paid. However, payments have to be made because fishing is going ahead bountifully. Our aim is to establish the mechanism for fishermen receiving [payments] in 48 hours. I am someone who acts as I pledge. We're doing the work of reaching the target. We will reach that target," the President said.
Fishermen have been paid MVR 442 million to date but MVR 300 million was still owed, the President said.
"We want to quickly finish making the pending payments. After that money is paid, we're working to go for a mechanism where payments can be made in a maximum of 48 hours in the future. This isn't something different. This is very clearly how it is," the President revealed.
A set up for payments within 48 hours of weighing fish catch was a campaign pledge of President Muizzu. Fishermen could be paid now by printing money but that would not be an economically prudent step, the President said.
"We're working on making payments without printing more money. It's very easy to [pay] by printing money. Shouldn't we print money and make these payments as well. Then the economy would fall into another pit. It won't ever be saved," the President said.
The government says bills worth several millions have been paid to the public and various companies since printing money ceased last month.
"The dollars kept for repaying debt were also converted with hundreds of millions of dollars from the Sovereign Development Fund converted. And again we have started depositing dollars for the big loans that need to be repaid in the next two years. These are things that need to be done. You have to look at the total picture," the President said.
The International Monetary Fund (IMF) has accepted the government's economic agenda and loans will be repaid along with development in the coming days, he said. The government is opening economic doors and working on bringing huge investments to the country, President Muizzu said.
"We assumed office knowing the state of it, by proposing an agenda to the people and after the people accepted it. You gave me the responsibility. I am fulfilling that responsibility transparently. There's nothing that's hidden," he said.
Three months since the government came to power, fishermen say they have not been paid for two of those months. According to the government, a backlog of MVR 250 million was inherited. Since then, outstanding payments owed to fishers have remained constant around MVR 300 million.
On September 16, 2023, between the first and second rounds of the presidential election, the fish purchasing price was raised to MVR 25 per kilo. However, the current government reduced the price to MVR 20 per kilo with effect on February 12, 2024.
Fishermen are owed about MVR 298 million. The government says the outstanding payments will be cleared by March 5.
