WAMCO Ordered to Pay Over MVR 1 Million Following Court Ruling
The Civil Court has ruled that the Waste Management Corporation (WAMCO) must pay MVR 1.16 million to the private company Salts and Sands. This comes after WAMCO failed to settle the full amount owed for goods supplied by the company. The payment must be made within 15 days of the ruling.
Background of the Payment Dispute
Salts and Sands initially filed a lawsuit against WAMCO seeking MVR 2.1 million, the total amount WAMCO had not paid for goods delivered. WAMCO acknowledged the debt and admitted in a letter to the court that they had already paid MVR 115,428 towards the balance.
After deducting this amount, the court ordered WAMCO to pay the remaining MVR 1.16 million within the specified timeframe. Additionally, WAMCO is required to pay MVR 50,000 to cover legal costs incurred by Salts and Sands during the court proceedings.
This case highlights ongoing issues where some government-owned entities in the Maldives have delayed payments or defaulted on dues to private businesses. Similar court rulings have been made against various state-affiliated companies in recent years, as private firms seek to recover outstanding debts.
Ensuring timely payments is critical for maintaining healthy business relations between the public and private sectors. Cases like this remind us of the challenges faced by suppliers working with government-linked organizations and the legal recourse available to protect their rights.