Awarding projects to state-owned enterprises beyond their capacity negatively impacts ordinary employees: Nishan

Legal expert Mohamed Nishan Ibrahim has stated that since the current administration took office, state-owned enterprises (SOEs) are being tasked with responsibilities far exceeding their capacity and resources. He noted that this has placed an immense burden on these companies, reaching a point where the job security of their employees is now being called into question.

Speaking on RaajjeTV’s "Fala Surukhee" program, Nishan stated that state-owned enterprises are currently operating in contradiction to their original founding mandates. He noted that the mismanagement of these companies directly results in adverse consequences for general employees. Nishan further emphasized that corporations must fully comply with and respect the Companies Act. However, he pointed out that current observations indicate a widespread failure among these entities to adhere to the law.

Speaking on the administrative management of companies, Nishan stated that once the necessary human resources are acquired, specific administrative procedures must be followed in managing those employees. He further emphasized that employment policies and regulations must be clearly explained to all new recruits joining the company.

Furthermore, Nishan noted that companies established both before and after the adoption of the Maldives' current Constitution continue to operate within the existing legal framework. He highlighted that major entities, such as STO, have also restructured their governing frameworks following the ratification of the Constitution to ensure full compliance with constitutional requirements.

"We are prepared to allocate a lagoon to the Ministry of Islamic Affairs. We are currently looking into the procedures for how such an allocation can be facilitated," he said.

Emphasizing the importance of streamlining corporate governance within a legal framework, Nishan called for projects and responsibilities to be assigned only after assessing the financial and administrative capacities of the companies involved. He described the government imposing unsustainable burdens on state-owned enterprises as a significant threat to their future stability and the job security of their employees.