More than MVR 60 million in advance payments had already been disbursed for 16 health infrastructure projects that were later cancelled without construction beginning, Minister of Health, Family and Social Services Geela Ali has said.
Responding to a question from Ihavandhoo MP Ahmed Naseer during a parliamentary sitting, Qeela said the projects were among several health sector developments initiated under the previous MDP administration that experienced significant delays.
According to the Minister, contractors had received advance payments for a number of projects despite physical work never commencing.
Since President Dr. Mohamed Muizzu took office, Geela said the government has been reviewing stalled health infrastructure projects and exploring options to either proceed with them or take other appropriate action.
As part of that process, contracts for 16 projects where work had not begun were terminated. However, more than MVR 60 million had already been paid to the respective contractors as advances, she said.
“We have had to cancel a large number of healthcare projects. More than MVR 60 million has been wasted after being handed over to various parties in this manner,” Geela told Parliament.
The Minister said efforts are now underway to recover the money through the required legal procedures, although the full amount has yet to be retrieved.
“We are currently working on completing the legal procedures necessary to recover these funds. Although it has not been fully accomplished yet, we are actively working towards it,” she said.
The disclosure comes as the government continues work on a large portfolio of health infrastructure projects across the country.
Geela said in July that 166 healthcare infrastructure projects were at various stages of implementation nationwide, forming part of the administration’s plans to expand and improve access to healthcare services.
Health infrastructure has been identified as one of the government’s major development priorities, with significant funding allocated to healthcare projects and programmes in this year’s state budget.
President Muizzu has also said the administration has drawn up a schedule for completing ongoing health infrastructure projects, with timelines determined according to the size and scope of individual developments.
Speaking at a recent press conference at the President’s Office, the President said the government aims to complete major health projects by the middle of 2028, while smaller projects are expected to be finished earlier.
The administration is simultaneously reviewing projects inherited from the previous government, including those where contracts had been awarded and advance payments released but construction had either stalled or not begun.
Geela told Parliament that recovering the funds already disbursed for the 16 cancelled projects remains part of that process.
