Small and medium enterprises (SMEs) are suffering due to the government's failure to issue payments owed to private companies.
The Finance Ministry is informing contractors that payments cannot be issued even in the next two weeks due to cash flow problems as a result of high government expenditure.
Adhadhu contacted various contractors and confirmed that the ministry's call centre was informing them that the money would not be released within the next two weeks.
"They say they can't pay because of difficulties in cash flow. They say they cannot pay in the next two weeks. They owe us payments in very small numbers too," a contractor said.
Some companies told Adhadhu that they were unable to pay their employees, repay loans and take on new contract work because of non-payment from the government.
"We don't get any payments from the government. But we have to pay taxes regularly. If we don't pay taxes, they say we will be fined. We are unable to even give salaries to our employees here. What can we do?" one contractor said.
However, an official from the Finance Ministry told Adhadhu that payments were being issued as agreed with the companies.
Despite the ministry's claim, Adhadhu understands that the government has not released any funds for any projects in Maldives since October.
When questioned about it a recent press conference this week, Finance Minister Moosa Zameer did not deny the reports and said cash flow is tight during October and November every year.
