Economic Minister Mohamed Saeed has announced the current administration’s commitment to modernising state-owned companies and enhancing their credibility as trusted entities. Speaking to local media on Saturday night, the Minister emphasised the administration’s strategic goals and detailed the challenges inherited from previous governments.
Minister Saeed alleged that many state-owned companies were in a dire financial state when President Dr. Mohamed Muizzu’s administration took office. He specifically pointed out the critical condition of Fenaka Corporation, which was burdened with billions in debt, making recovery seem almost impossible.
To address these issues, the administration plans to strengthen the management of such companies, paving the way for their modernisation and raising their standards to be credible entities recognised by international financial institutions.
“Not only locals. If improving the state of the companies and modernising them require international expertise, such individuals will be brought in. Our administration’s goal is to modernise the companies and establish credibility before the people and internationally,” Minister Saeed stated.
The Minister also mentioned that the government plans to reform state-owned companies by dissolving those that are necessary and merging companies with similar work scopes. This approach aims to streamline operations and improve efficiency within the public sector.
As part of these reform efforts, significant steps have already been taken to strengthen the operations of the state fisheries company, MIFCO. These initiatives are a testament to the government’s commitment to improving the performance and governance of state-owned enterprises.
However, Minister Saeed acknowledged the need for substantial improvements in corporate governance. According to Transparency Maldives (TM)’s Governance Transparency Index (CGTI), over 20 state-owned companies scored below 40 percent in the disclosure of their corporate governance mechanisms. This highlights the critical need for reform and the administration’s dedication to addressing these deficiencies.
The government’s modernisation strategy aims to build trust and credibility, ensuring that state-owned companies can operate efficiently and transparently, benefiting both the local population and gaining recognition on the international stage.
