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Transition Committee reveals government companies are in debt

Transitional Committee that reviewed the status of government companies has revealed most companies are in debt. The committee monitored the situation of 28 government companies, excluding subsidiary companies.

Addressing a press conference held this afternoon to reveal the committee's findings, committee member Ilyas Labeeb said they carried out an assessment and not an audit of the companies. Ilyas noted some of the government companies refused to cooperate with the transitional committee's efforts. This included companies such as Housing Development Corporation (HDC), Fenaka Corporation Limited, Maldives Ports Limited, Maldives Transport and Contracting Company (MTCC), Aasandha healthcare services, Public Service Media (PSM), and Kahdhdhoo Airport Company, said Ilyas. He said of the 28 companies, only 9 generate profits to the state.

The transitional committee revealed that based on information the committee was able to extract, the companies owe a total of USD 252 million to various parties and that the companies are owed USD 284 from various entities. The committee noted that this translates into the expenditure on the companies from the state budget exceeding returns from the companies. The committee expressed the need for the incoming government to strengthen the companies and transform them into profit-generating entities.

Chair of the committee Thayyib Mohamed Waheed, however, noted they did not get the information about expenses from Public Service Media (PSM), Maldives Marketing and Public Relations Corporation (MMPRC), and Maldives Integrated Tourism Development Corporation (MITDC). He also noted while MITDC is mandated to work with island councils to improve local tourism, they have observed that there have been very little communication between MITDC and local councils.