The Maldives National Association of Construction Industry (MACI) has expressed concerns about the government's delay in paying contractors for completed work.
In a statement, MACI said the government is delaying the payment of money to companies when invoices are raised after completing the work using company materials. As a result, the companies are unable to pay their employee's salaries on time, leading to employees stopping their work and leaving some employees struggling to meet their basic needs. Additionally, the affected companies are also facing challenges in meeting their financial obligations to suppliers, it said. Efforts to resolve and rectify the situation have been unsuccessful so far, the statement further said.
The statement suggested that while contractors are fined if the government contracts are not completed in the given timeframe, the same practice should apply to delays in government payments. Any payment made late must include a fine, it said.
Delays in payment of government projects have always been a complaint of companies. The amount of money the government owes the companies is unclear.
