Companies don’t operate on corporate principles in the Maldives anymore: Amru
Amru stated that MTCC is barely operating with the minimum amount of funds available, and that this company is also not functioning well
Hussain Amru, former MD of STO
Former Managing Director of State Trading Organization (STO) Hussain Amru has stressed that while companies should be operated according to corporate governance principles, there is not a single company in the Maldives that is currently operating in accordance with these principles.
Speaking on RaajjeTV's "Fala Surukhee" programme, Amru highlighted the low competence of individuals appointed to manage government-owned companies and expressed concern about the growing issue. He also emphasized that the management of companies has become increasingly negligent.
Further, he said that companies suffer significant losses due to not operating according to principles. Citing the Maldives Industrial Fisheries Company Limited (MIFCO) as an example, Amru said that at the beginning of the current administration, there were major corruption allegations pinned on MIFCO. He added that from that point, President Dr. Mohamed Muizzu began advocating for bringing in a foreigner to MIFCO.
Amru said that he had previously pointed out that this was not the solution for properly managing the company. He stated that a foreigner was appointed to MIFCO at a salary three times higher than what would be given to a Maldivian, and that the person is paid in U.S. dollars. However, Amru said that the results of this decision have not been positive.
He emphasized that MIFCO was later assigned to a retired military officer, and that the company is still not being managed properly. In this regard, Amru said that even the salaries of fishermen are being paid through a loan taken from Bank of Maldives (BML), which is not a sustainable method.
In addition to this, Amru stated that the Maldives Transport and Contracting Company (MTCC) is barely operating with the minimum amount of funds available, and that this company is also not functioning well. He noted that MTCC is not undertaking any new projects and criticized the situation. Amru said that the company is only receiving payments for previous work, and that they are barely able to pay salaries with the current income.
