The Finance Ministry has clarified that the compensations issued by the current government thus far this year are for transactions initiated by the previous administration.
According to the Weekly Fiscal Development Report published on the Finance Ministry website, MVR 82 million has been disbursed as compensation up to March 21 this year. The ministry does not disclose the details of the recipients of compensation.
The ministry said the compensation was paid to companies and individuals who were engaged in activities under the previous government's tenure. No funds have been released to any new parties by the current government, the ministry said, adding that the Attorney General's counsel is sought before any compensation is issued.
The Finance Ministry said the compensation is being paid with urgency due to the high interest that would be incurred if the disbursements were delayed. All outstanding payments due in this regard have been settled by the end of March, the ministry added.
A total of MVR 101 million has been allocated for compensation from this year's state budget. Although the same amount was allocated last year too, the total amount disbursed exceeded this amount to reach MVR 557 million.
Finance Minister Dr. Ismail Shafeeq
