Yameen: Mounting unpaid bills could leave STELCO unable to afford turbine fuel

Former President Abdulla Yameen warned on Thursday evening that the State Electric Company (STELCO) could reach a point where it no longer has funds to purchase fuel if government agencies continue to default on payments.

Speaking at a People’s National Front (PNF) rally, Yameen said STELCO does not cut off electricity to ministries or state institutions even when they fail to pay their bills. As a result, he claimed, the company is burdened with mounting debts and faces severe financial challenges.

Under the Right to Information Act, Sun requested details of unpaid bills owed to STELCO by government agencies, independent institutions, and companies as of October 27 last year. However, STELCO declined to disclose the information, citing potential harm to its business interests. 

Similarly, STELCO itself has large unpaid bills owed to some companies, adding to its financial strain.

Yameen argued that the secrecy surrounding the amounts owed was intended to prevent public scrutiny of STELCO’s financial position. He said STELCO is not only owed money by other state-owned enterprises, but also by ministries and state institutions, highlighting the scale of the problem across government agencies.

“But STELCO cannot cut off electricity anywhere here. STELCO is reaching the point where it will not have the money to buy the fuel needed to run its turbines,” he said.

He added that the government would eventually be forced to 'pump' funds into STELCO and other state-owned companies. Yameen further accused President Dr. Mohamed Muizzu of draining liquidity from government enterprises.

Highlighting the disparity, Yameen noted that while households face disconnection if they fail to pay electricity bills, government agencies and some companies owe millions of rufiyaa without facing similar consequences.