The Ministry of Homeland Security and Technology has extended the deadline for companies to settle overdue expatriate-related fees until the end of August 2024, following limited compliance from businesses. This decision, announced last night, underscores the Ministry’s commitment to enforcing regulations and recovering outstanding debts.
Background and Initial Deadline
On July 24, 2024, the Ministry publicly disclosed a list of companies that had failed to pay their expatriate fees, including work permits and quota fees. These companies were initially given until August 12 to settle their outstanding payments and fines.
Limited Compliance and Extension Announcement
By August 15, only 20 companies had fully settled their dues, despite some businesses making significant payments. Many others, however, still had outstanding balances, leaving them on the Ministry’s ‘blacklist’. In response, the Ministry has extended the deadline to August 31, 2024.
Penalties for Non-Compliance
Companies that fail to comply by the new deadline will face suspension from the expatriate management system starting September 1, 2024. This suspension will prevent access to essential services, including the issuance of work permits and visas.
Outstanding Debts and Recovery Efforts
The companies named in the July 24 list were those with overdue payments and fines exceeding MVR 100,000. In total, 1,026 companies owed the State MVR 636 million in unpaid fees, including some of the country’s most prominent businesses. Among these, 123 companies each owe more than MVR 1 million, with some debts as high as MVR 26 million.
Since the publication of the list, the Ministry has successfully recovered MVR 182,954,572 in overdue payments over three weeks.
Conclusion
The Ministry’s decision to extend the deadline highlights the ongoing efforts to ensure compliance with expatriate fee regulations and recover significant outstanding debts from businesses across the Maldives. The enforcement of strict penalties for non-compliance after August 31 reinforces the Ministry’s determination to uphold these regulations.
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