Minister of Finance and Public Enterprises Moosa Zameer has instructed the Privatization and Corporatization Board (PCB) to cut staffing at State owned enterprises by 33 percent as part of efforts to improve governance and management.
The directive was issued in a letter sent by the minister yesterday to PCB President Mohamed Anas, the Finance Ministry revealed.
"These measures add to the actions previously announced by the PCB to reduce expenditure, strengthen policies, and improve financial management at SOEs," a document shared with media by the Finance Ministry reads.
Measures previously announced by the PCB include:
- Take necessary action to significantly reduce spending on staff salaries and allowances.
- Plan to complete work during official working hours. To avoid overtime work except where absolutely necessary.
- A halt on granting promotions. To avoid hiring people for positions even if it is already included in the approved administrative framework unless vital to carry out operations.
- Manage spending on staff salaries.
- Implement measures to prevent any expenditure outside what is strictly necessary to carry out the duties defined in the company's statutes.
- Study the possible economic impacts of the Middle East conflict, take necessary steps in response, and take steps to ease any financial burden on the public.
- Avoid holding events unless absolutely vital.
- Refrain from international travel except where strictly essential, and use online meetings as the preferred alternative.
- Minimize the company's expenditure on international travel to the greatest extent possible.
- Suspend overseas training and replace them with online training instead.
- Where ferry services are available, staff transport should be arranged through those services.
- Where possible, opt for renewable energy for company operations.
As per the Finance Ministry, the letter sent to PCB President Anas yesterday encouraged to increase productivity, and better manage human resources at SOEs. The letter outlined further actions that can be taken to ensure SOEs are operated in a financially sustainable manner.
"As part of these instructions, to bring down operational expenses of SOEs and to better manage expenses, the Minister directed the PBC to reduce the number of employees by 33 percent," the Finance Ministry's statement reads.
According to the Finance Ministry, the PCB has been directed to tighten hiring policies, prioritize merit-based recruitment, and ensure SOEs comply with the new standards.
The Finance Ministry said that the move is intended to ensure that the most suitable candidates are selected and that SOEs operate at full efficiency.
