The Ministry of Finance has decided to deduct MVR 19 million from the block grant allocated to Malé City Council this month.

The council is due to receive MVR 19.3 million in block grant funding, but the deduction would leave it with just MVR 285,734.

A council member said the council has written to the Finance Ministry warning that the deduction could make it difficult to pay staff salaries and cover operational expenses. The council has also requested discussions with the ministry on the matter.

The deduction is linked to unpaid payments owed by the council to Waste Management Corporation Limited (WAMCO).

WAMCO said the council's outstanding payments have reached MVR 116.4 million since 2022, affecting the company's finances and its ability to meet employee pension obligations.

The company said settling the outstanding amount would help recover its financial losses and address difficulties in registering new premises and introducing new services.

WAMCO said it would continue providing essential services to the public despite the financial difficulties.

The company also said it provides services to government institutions at different rates to keep costs low for the public, rejecting claims that the council is being charged excessive rates.

WAMCO added that repeated requests for a payment schedule from the council have not received a response.