PSIP Projects’ Duration was Extended Unlawfully, Says Firuzul

The Economic Council does not have the authority to give six months extension for the completion of Public Sector Investment Programme (PSIP) projects signed before May 30, 2020, President-elect’s Spokesperson Mohamed Firzul Abdullah Haleel said.

He said this while speaking at a press conference yesterday.

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Firuzul highlighted that the Economic Council, as per its mandates established on April 25, 2019, does not possess the authority to facilitate such project extensions. 

Emphasising the delineation of powers within the Economic Council’s scope, Firuzul stated that its role pertains to formulating and executing policies for various government departments, as well as addressing challenges encountered during the implementation of development projects. 

He underscored that such authority does not fall under the jurisdiction of the Ministry of Finance, as per the Finance Act and Rules.The Finance Act stipulates specific procedures for extending the duration of PSIP projects. 

Firuzul pointed out that assistance from State funds may only be granted under certain conditions. This includes cases where the government deems it in the social interest or just to provide aid to an individual or entity. 

Otherwise, assistance is extended in situations where the government perceives it as fair and equitable to rescue an individual or entity from financial hardship affecting a reasonable proportion of society.