State institutions owe STELCO over MVR 948 million in outstanding payments
According to STELCO's audit report for the past year, outstanding payments owed to the company by various state institutions have increased by 22 percent compared to the previous year. With the Ministry of Finance identified as the largest debtor and 19 government agencies holding significant unpaid balances, the report warns that these mounting arrears could negatively impact the utility provider's financial stability.
STELCO building. | Stelco
It has been revealed that the total outstanding debt owed to State Electric Company Limited (STELCO) by various government agencies, including unpaid electricity bills and other dues, has reached MVR 948 million.
This was revealed following the publication of the company's audit report for the previous year.
According to the audit report, the total amount of receivables owed to the company last year exceeded MVR 948 million, marking a significant 22 percent increase compared to the previous year. The report’s statistics highlight that this substantial figure poses a potential threat to the company’s financial stability.
According to the list of entities with outstanding payments to STELCO, the Ministry of Finance owes the largest amount. Reports indicate that the Finance Ministry alone has over MVR 300 million in unpaid dues to the utility company.
Furthermore, it has been noted that a total of 19 entities, including various government agencies and State-Owned Enterprises (SOEs), owe substantial outstanding debts to STELCO.
Since the current administration took office, significant and frequent changes have been observed in STELCO’s organizational structure and senior leadership positions. The public and opposition figures have expressed growing concern over these shifts, arguing that the constant restructuring has undermined the company's operational stability.
