The Edition


STELCO suffers MVR 2 million in losses: audit report

Ahmed Aiham
31 October 2019, MVT 15:10
The powerhouse in reclaimed suburb Hulhumale'. PHOTO: MIHAARU FILES
Ahmed Aiham
31 October 2019, MVT 15:10

An audit report released on Wednesday recorded MVR 2 million in losses for State Electric Company Limited (STELCO) each month.

According to the report released by the Auditor General's Office, STELCO suffered MVR 2,120,854 in losses following revisions to the company's pricing. The state has allocated MVR 17.6 million as a subsidy to mitigate the loss.

Ministry of Environment advised imposing a "cost-reflective tariff" to reduce state dependency to operate the utility company.

The report further noted MVR 2 billion in unpaid loans with accumulated interest since 2005. In addition, the report included efforts to recover funds owed to STELCO by other state-run companies.

Moreover, it highlighted large risks associated with the storage of fuel at neighbouring 'petrol island' Kunfunadhoo next to capital city Male'.