Infrastructure Minister Dr. Abdulla Muthalib has revealed that some contractors awarded government projects are misusing advance payments by financing their personal business ventures instead of completing the assigned projects.
During a parliamentary questioning session on Wednesday morning, Muthalib addressed inquiries about stalled infrastructure projects in various constituencies. He highlighted that since 2023 and even earlier, certain companies winning government contracts had absconded after receiving advance payments without initiating any work.
“These companies flee, use the money to run their own businesses, and return years later to bid for new projects,” Muthalib explained. “This practice causes significant financial losses to the state, as the funds meant for public projects are diverted for personal gain.”
His comments come amidst allegations that several government contracts—along with contracts from entities like Fenaka Corporation—were unfairly awarded to senior members of the Maldivian Democratic Party (MDP) and their families during their administration from 2018 to 2023.
Corruption in the awarding of government contracts has been a persistent issue across all Maldivian administrations. It has also created significant barriers for business owners who lack political connections, further exacerbating challenges in the sector.
