Econ Minister criticizes past gov’ts for forgiving state debts and issuing large compensations

Economic Minister Mohamed Saeed has criticized the previous administration under former President Ibrahim Mohamed Solih for forgiving significant amounts owed to the state and releasing large sums as compensation to various parties.

President Dr. Mohamed Muizzu recently disclosed that over MVR 14 billion is owed to the state, primarily in land rent and taxes. This includes approximately $513 million in land rent, $102 million in TGST, and more than MVR 3.3 billion in GST.

Minister Saeed expressed disappointment over the substantial pending payments and criticized former leaders for not addressing these financial obligations. He specifically pointed out the actions of the MDP government under President Solih, stating that the former government pardoned dues and distributed large compensations.

Saeed said the amounts owed to the state, which exceeds MVR 13 billion, can pay off a large portion of the country’s external debt.

“US$ one billion in loans are due in 2026. That amount can be paid without any obstacles [with this amount],” Saeed said.