MVR 10 Billion Misappropriated from SOEs During the Previous Administration, MP Saleem Claims

Eydhafushi MP Ahmed Saleem of the ruling People’s National Congress (PNC) has claimed that approximately MVR 10 billion was misappropriated from state-owned companies during the administration of former president Ibrahim Mohamed Solih. 

Saleem, who also serves as the vice chairperson of the Parliament’s Public Accounts Committee, made these remarks during a PNC event held on Monday night, where he spoke at length about the country’s economic condition.

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According to Saleem, findings from the Public Accounts Committee’s inquiries into the financial affairs of state-owned enterprises between 2018 and 2023 revealed a concerning rise in debt and widespread financial mismanagement. He said that these companies had accumulated substantial liabilities under the former government, and highlighted irregularities in project awards and procurement practices.

Saleem pointed specifically to FENAKA Corporation, stating that roughly MVR 4 billion had been lost through contracts awarded and goods procured at inflated prices. He estimated that similar practices across all state-owned companies may have resulted in the misappropriation of around MVR 10 billion over five years.

He further stated that the public must be kept informed of such matters, arguing that many were unaware of the full extent of the financial situation inherited by the current administration. While the government had expected economic difficulties upon assuming office, Saleem noted that the actual fiscal position turned out to be worse than anticipated.

Despite an increase in state revenue, Saleem said the principal concern remains the country’s substantial debt obligations, which he claimed are projected to outpace revenue in the coming years. He also addressed criticism from the opposition regarding the current administration’s pace of development projects, asserting that economic stabilisation must take precedence over expansion during periods of fiscal constraint.

Following the 2023 presidential election, the current government raised concerns about the financial condition of state bodies, including the significant debt burden carried by both ministries and state-owned enterprises. Officials noted that these challenges were impeding the administration’s ability to operate effectively.