Construction Minister Dr. Abdulla Muthalib has raised concerns about contractors misusing advance payments for state projects.
Replying to questions raised by MPs in Parliament today, Minister Muthalib said some contractors divert funds for business ventures instead of completing projects after taking advance payments from the state. He noted that contractors have abandoned work after receiving payments in several cases, causing delays and financial losses for the state.
“This misuse dates back to 2023 and earlier, with contractors reappearing years later to bid on new projects, after using the advance payments to generate profit,” Muthalib said.
