Finance Minister Moosa Zameer stated today that while the Privatization and Corporatization Board (PCB) has been instructed to reduce the staff count of State-Owned Enterprises (SOEs) by 33 percent to strengthen their systems and management, this will be carried out within the framework of laws and regulations and through a systematic process.
In a letter sent to the President of the PCB, Mohamed Anas, last Friday, Minister Zameer directed that the number of employees in government companies be reduced by 33 percent.
"These measures are additions to the instructions previously issued by the PCB to reduce company expenses, maintain robust principles in spending, and improve financial management," stated a document shared with the media by the Finance Ministry yesterday.
During a media briefing today by the ministerial committee established by President Dr. Mohamed Muizzu to identify and take action on the impacts of the Middle East war on the Maldives, Zameer said it is estimated that there are 42,000 employees in state companies.
The Minister noted that depending on the individual circumstances and staff numbers of certain companies, a 33 percent reduction might not be feasible while downsizing operations. Zameer cited Island Aviation as one such example.
"In IAS, it won't be necessary to reduce (staff) by that amount. If that number were reduced, the company could not operate. Similarly, there are some other companies that cannot be reduced in the manner mentioned," the Finance Minister said.
According to him, the instruction to reduce the staff of government companies by 33 percent was not issued with the mindset of "dismissing these specific people by tomorrow morning."
"I have instructed that this be done through a systematic process and in accordance with the Employment Act. This should be done while considering the difficulties that may arise for people because of this," Zameer said.
He further stated that "we are very sensitive" to the difficulties the public might face while staff are being reduced in government companies.
The Finance Ministry stated yesterday that in the letter sent to PCB President Anas, Minister Zameer emphasized increasing operational efficiency and strengthening human resource management in companies. The Ministry added that the letter also outlined further measures to be taken to encourage the financially sustainable operation of these companies.
The Finance Ministry requested the PCB to strengthen the recruitment system and further fortify the merit-based policy of appointing individuals based on educational qualifications, skills, and capability. The Ministry also stated that instructions were given to the PCB to ensure compliance with that policy.
