Velidhoo MP Says Government Could Have Saved MVR 1.5 Billion Through Bidding Process

Velidhoo MP Mohamed Abbas has alleged that the government could have saved up to MVR 1.5 billion if it had awarded public projects through competitive bidding rather than direct contracting.

Speaking during the 2026 state budget debate in Parliament, Abbas — who said he has 25 years of experience in the construction industry and employs around 380 workers — claimed that the government recently awarded 206 projects worth MVR 2.7 billion without any bidding process. He described the move as a significant financial loss, stating that proper tendering could have freed funds for vital sectors such as housing, healthcare, education, and infrastructure development.

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Abbas, representing the Maldives Development Alliance (MDA), criticised the government for allegedly granting projects at inflated prices. Citing examples, he said some projects valued at MVR 50 million were awarded for MVR 90 million, while others that could be completed for MVR 2.5 million were contracted for MVR 3 million. “The state could have saved MVR 1.5 billion if these buildings or projects had been announced through a bidding process,” he said.

While acknowledging that the upcoming year’s budget appeared promising, Abbas expressed doubt over its implementation, saying the previous two budgets under President Dr Mohamed Muizzu’s administration had failed to deliver on key pledges. He noted that despite the president’s promise to provide homes for every citizen above 18 years old, no major housing projects had commenced. Abbas further argued that priorities should focus on water and sewerage systems, education, and healthcare rather than building airports on every island within short distances.

During the debate, ruling party members defended the government’s record, praising its efforts to stimulate economic growth and blaming the previous administration for corruption and wasteful spending. Opposition members, however, accused the current government of failing to deliver tangible results despite significant expenditure over the past two years.

The government has proposed a budget of MVR 64.2 billion for 2026 — an increase of MVR 8 billion from the current year’s allocation of MVR 56.5 billion. Each MP is allocated up to 22 minutes to speak. The members are given 15 minutes to debate the estimated budget, followed by an additional seven minutes to discuss the committee report.