The Privatisation and Corporatisation Board (PCB) of the Maldives has unveiled a decisive strategy to address the financial struggles of various state-owned enterprises (SOEs) as part of ongoing reform initiatives.
Addressing the SOE Committee of the parliament, PCB’s Secretary General, Ahmed Yameen, disclosed that a comprehensive standard operating procedure (SOP) has been devised to manage unprofitable entities. Relevant agencies have already been informed of these procedures, he added.
In his remarks, Yameen detailed the forthcoming actions, noting that certain companies will undergo mergers, while others face liquidation. “The board has meticulously prepared a list identifying which companies will be dissolved and which will be merged. This list has been endorsed and forwarded to the appropriate government agencies,” he said.
Despite finalising these decisions, the PCB has yet to publicly disclose the names of the affected organisations.
Yameen further mentioned that the Board is currently formulating critical policies concerning SOE operations and establishing a robust system to monitor their performance. This move is anticipated to streamline SOE activities and enhance accountability.
In a related development, Finance Minister Dr. Mohamed Shafeeq announced last week that a comprehensive assessment of all SOEs is underway and is expected to conclude within two weeks. The findings will be presented to the Economic Council, which will subsequently initiate cost-cutting measures.
Dr. Shafeeq emphasised the financial burden of SOEs on the government, pointing out that millions are spent monthly to sustain these entities. He warned that significant actions would be taken to curb expenses.
The PCB’s and the Finance Ministry’s concerted efforts signify a pivotal step towards enhancing the efficiency and sustainability of state-owned enterprises in the Maldives, reflecting the government’s commitment to economic reform and fiscal responsibility.
