STELCO’s multi-million USDnet profit last year was achieved by stealing from the public: MP Ghafoor
Member of Parliament for the Hanimaadhoo constituency, Abdul Ghafoor Moosa, has expressed concern over the unusually high STELCO electricity bills, questioning the substantial profits reported by the utility company last year. He alleged that such significant earnings from an essential service are being generated by unfairly overcharging the public. However, audit reports indicate that STELCO's net profit of MVR 238.7 million was primarily a result of financial progress made through the reduction of the company's debt.
Member of Parliament for the Hanimaadhoo constituency, Abdul Ghafoor Moosa, speaking during a program on RaajjeTV. | RaajjeMV
Abdul Ghafoor Moosa, the Member of Parliament for the Hanimaadhoo constituency, has alleged that the State Electric Company Limited (STELCO) generated millions in net profit last year by "stealing" from the public.
Speaking on RaajjeTV’s "TV Talk" program, MP Ghafoor stated that citizens have been complaining for several days regarding the extraordinary hike in electricity bills.
Referring to STELCO’s net profit of nearly 300 million Rufiyaa last year, MP Ghafoor accused the utility provider of theft, stating that his previous warnings are now being validated by these figures. He further argued that a company providing essential public services should not be generating such substantial profits. MP Ghafoor specifically questioned the legitimacy of these high earnings, expressing skepticism over how a company like STELCO could achieve such a significant financial surplus.
STELCO provides electricity to the Greater Male' region and approximately 10 other islands. Last year, they reported a profit of roughly 300 million Rufiyaa. I must say, there are allegations of overcharging on electricity bills. How else could they generate a 300-million-Rufiyaa profit? We saw the figures, didn't we, Amir? It might not have been exactly 300 million, but it was certainly well over 250 million. I do not recall the exact figure. How can the state extract such a massive profit while claiming to provide an essential service to the citizens with sincerity?Abdul Ghafoor Moosa, Member of Parliament for the Hanimaadhoo constituency.
Furthermore, MP Ghafoor stated that although electricity tariffs have not officially been increased, the actual amount payable on bills has now doubled.
He noted that, for instance, households previously paying 1,000 Rufiyaa are now required to pay 2,000 Rufiyaa.
MP Ghafoor stated that the current administration is acting in a manner that marginalizes the public, alleging that policies are being formulated and implemented through deceit and dishonesty to the detriment of the citizens.
The bills do not reflect any actual increase. The unit rates remain unchanged. On the other hand, when looking at the final figures, they show a profit of approximately 300 million Rufiyaa. We aren't just making these claims, Amir. In the end, the reality we face aligns perfectly with these calculations. Therefore, it is clear there is nothing these individuals won't do to the public.Abdul Ghafoor Moosa, Member of Parliament for the Hanimaadhoo constituency.
According to the annual audit report of STELCO released by the Auditor General’s Office on June 28, the company recorded a net profit of MVR 238.7 million last year. The audit report highlighted that the primary driver behind this significant profit was the substantial reduction in the company's overall debt.
