Mohamed Ali Janah, President of the Maldives National Association of Construction Industry (MACI) and Principal Advisor to President Dr Mohamed Muizzu on Trade and Investment, has raised concerns over delays in payments for completed work, which he says are severely disrupting ongoing projects and affecting the ability of businesses to pay their workers.
Speaking at the opening of the Construction Industry Forum (CIF) held at the Manhattan Business Hotel on Monday, Janah highlighted that the delay in payments is leading to significant cash flow challenges for businesses within the industry, particularly those already operating on tight margins.
“Many businesses in our industry have faced huge cash flow difficulties due to delayed payments. And contractors are already managing on tight margins. This disrupts ongoing projects and affects the business’s ability to pay their workers,” Janah stated.
Janah pointed out the broader impact of these financial challenges, noting that the difficulty in securing funds is hindering the timely completion of projects. He revealed that the construction sector’s debt at the Commercial Bank increased by six per cent in the first quarter of this year, while operational activities declined by nine per cent.
The MACI President also raised concerns about the growing scarcity of US dollars, which has compounded the issue by making it difficult for businesses to pay foreign suppliers for critical imported materials.
The comments from Janah, who serves as a key advisor to President Muizzu, come at a time of heightened sensitivity with reports indicating that the country’s US dollar reserves may be exhausted by the end of August.
