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STO to initiate debt laden fisheries company takeover

Fathmath Shaahunaz
02 October 2016, MVT 15:01
The main MIFCO outlet in capital Male. MIHAARU FILE PHOTO
Fathmath Shaahunaz
02 October 2016, MVT 15:01

Conversion of the debt laden and mismanaged state fisheries company into a subsidiary of the main trading company will commence this week, announced State Trading Organisation (STO).

The Maldives government had taken the decision last Thursday, disclosing that the Maldives Industrial Fisheries Company (MIFCO) had amassed a staggering MVR300 million debt.

STO’s managing director Ahmed Shaheer told Mihaaru on Sunday, “The decision whether MIFCO will be operated as a subsidiary or department of STO’s can only be taken after receiving the company’s documents. We’re looking to commence the legal process within this week.”

Shaheer added that the result of discussions with MIFCO’s board of directors will be revealed very soon.

According to the Economic Council of the President’s Office, MIFCO’s debts include MVR 2 million owed to fishermen, which the council assured will be repaid by the government.

Speaking at the press conference held Thursday, Finance minister Ahmed Munawwar had said the primary reason behind the decision to convert MIFCO into a subsidiary of one of the most profitable state firms STO was the millions owed to banks and local fisherman.

The council said the move would mean a chance to clear the debt and a new beginning for the company which was established in 1993.

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