Saleem: Some MVR 10B “stolen” from SOEs during the former administration

Ruling People’s National Congress (PNC)’s Eydhafushi MP Ahmed Saleem (Redwave Saleem) has alleged that approximately MVR 10 billion were “stolen” from state-owned companies during former president Ibrahim Mohamed Solih’s administration.

Saleem, who also serves as the vice chairperson of the Parliament’s Public Accounts Committee, spoke regarding Maldives’ economic state during an event held PNC last night. In this regard, he shared some of the findings of inquires conducted by the Public Accounts Committee into the finances of state-owed companies between 2018 and 2023.

Saleem, citing the public should have clear knowledge of the finances of state of state-owned companies, said each of these entities had accumulated billions in debt under the previous administration.

Referring to the inquiries conducted by the Committee, Saleem said some MVR 4 billion has been “stolen” from state-owned Fenaka Corporation alone by awarding projects and purchasing items at a much a higher price than market value.

“Approximately MVR 10 billion has surely been stolen in the five years when looking into all companies. This is by awarding projects and purchasing items at a much higher price than market value,” he said.

Saleem expressed his belief that the public needs to be constantly reminded of these details, adding they would not be aware of the reality of the situation when the current administration assumed office.

He said that while the current administration had anticipated a poor economic situation upon taking office, the reality turned out to be far worse than they had expected.

Despite state revenue is increasing day by day, Saleem said the main concern is the looming debt obligations in the coming years, which exceed the revenue being generated.

Speaking further, Saleem rejected the opposition's claims that the current administration had failed to carry out developmental projects. He explained that such initiatives can only proceed when the circumstances permit, emphasizing that there must be a point where projects are paused to prioritize stabilizing the economy.

Upon taking office, the current administration expressed concern over the significant debt obligations of ministries and state-owned companies, stating that these financial burdens were obstructing their ability to carry out their work effectively.

State-owned companies have consistently faced corruption allegations across all administrations, including claims of creating jobs for political purposes.

According to the current administration, one of the key priorities in its reform agenda is to reform state-owned companies.

Notably, top global credit rating agency, Fitch, has maintained Maldives’ credit rating at ‘CC’, citing risk of default persists.

Maldives has to repay USD 688 million for foreign loans this year alone, and MVR 1.1 billion with the next two years. Fitch said it believes that persistent external and fiscal vulnerabilities will complicate the sovereign's refinancing of its impending large external debt-servicing obligations.