President Dr. Mohamed Muizzu has addressed concerns over the precarious financial situation of government-owned enterprises, attributing their dire state to political misuse.
Speaking during the "Raees ge Javaabu" program, where the President engages directly with the public on social media, Dr. Muizzu highlighted the urgent need for economic reforms to address mounting debts incurred by these entities.
According to the President, the mismanagement and politicization of government companies have pushed many to the brink of bankruptcy. He lamented that apart from a select few, most state-owned enterprises operate at a loss.
Efforts are underway to negotiate with financial institutions to rescue these companies and devise strategies for repaying outstanding debts owed to the public and private sectors, Dr. Muizzu revealed.
During a recent rally in R. Meedhoo, the President disclosed that government enterprises collectively owe around MVR 9 billion to individuals and private firms, underscoring the severity of the financial crisis.
Moreover, Dr. Muizzu highlighted how stalled projects in various islands have been adversely affected by the withholding of funds, prompting the government to expedite disbursements to facilitate project completion and mitigate economic setbacks.
As the government grapples with the fallout from political exploitation of state-owned enterprises, urgent measures are being pursued to stabilize these entities and prevent further financial deterioration.
Speaking during the "Raees ge Javaabu" program, where the President engages directly with the public on social media, Dr. Muizzu highlighted the urgent need for economic reforms to address mounting debts incurred by these entities.
According to the President, the mismanagement and politicization of government companies have pushed many to the brink of bankruptcy. He lamented that apart from a select few, most state-owned enterprises operate at a loss.
Efforts are underway to negotiate with financial institutions to rescue these companies and devise strategies for repaying outstanding debts owed to the public and private sectors, Dr. Muizzu revealed.
During a recent rally in R. Meedhoo, the President disclosed that government enterprises collectively owe around MVR 9 billion to individuals and private firms, underscoring the severity of the financial crisis.
Moreover, Dr. Muizzu highlighted how stalled projects in various islands have been adversely affected by the withholding of funds, prompting the government to expedite disbursements to facilitate project completion and mitigate economic setbacks.
As the government grapples with the fallout from political exploitation of state-owned enterprises, urgent measures are being pursued to stabilize these entities and prevent further financial deterioration.
