President Dr Mohamed Muizzu has announced that the Government will dissolve Fenaka and the Road Development Corporation (RDC), with Fenaka’s utility services to come under State Electric Company Limited (STELCO) and RDC's road construction operations to move under Maldives Transport and Contracting Company (MTCC).
The President announced the decisions during a press briefing held today as he outlined measures to strengthen the management of Government-owned companies. He said the Government has decided to dissolve two of its companies as part of these efforts.
Under the changes, STELCO will take over the utility services currently provided by Fenaka, while MTCC will take over the road construction works carried out by RDC.
President Dr Muizzu said the changes would reduce employee numbers, right-size the companies and cut wasteful expenditure.
He said previous Governments had recruited more employees than companies required, driving up expenditure and creating significant operational difficulties. The President said reducing employee numbers through the changes would strengthen the management of the companies beyond current levels.
Companies have also faced significant losses because employee numbers were disproportionate to their workload.
There is public concern that previous Governments recruited people to companies around election periods for political gain, with many receiving high salaries for positions in which they had no work to perform.
In response to the issue, the Government had previously taken steps to right-size such companies by dismissing employees who had no work to perform. The Government has now expanded these efforts further and dissolved some companies.
AgroNat to become MIFCO subsidiary under Government restructuring
As part of the wider restructuring of Government companies, President Dr Mohamed Muizzu has announced that Agro National Corporation Limited (AgroNat) will become a subsidiary of Maldives Industrial Fisheries Company Limited (MIFCO).
The restructuring includes dissolving some companies and changing the way others operate. Outlining the change involving AgroNat, President Dr Muizzu said MIFCO and AgroNat working together would bring significant benefits.
He said the arrangement would make it easier to expand AgroNat's business, achieve food security objectives and expand the agricultural industry, describing it as the best approach for the public.
MIFCO will also take responsibility for managing a new market being developed in Malé specifically for farmers and fishers to sell their produce.
The President said the market would operate sustainably and be managed in a way that provides the greatest benefit to businesses and the public. The Government will entrust MIFCO with managing the market.
President Dr Muizzu said the market is expected to be completed by 10 December next year.
AgroNat, or Agro National Corporation, is a Government-owned company established in 2020 to develop and expand agriculture in the Maldives. Its main objectives are to secure fair prices for produce grown by farmers and help bring their produce to market.
The company also aims to develop the technical and administrative capabilities required for agricultural businesses.