The Edition

Latest

Chrysalis

  1 day

STO to court over pending MVR 2.4 billion

12 February 2019, MVT 20:33
Managing Director of State Trading Organization (STO) Hussain Amru (L) during a STO held press conference. PHOTO: HUSSAIN WAHEED/MIHAARU
12 February 2019, MVT 20:33

The Managing Director of State Trading Organisation (STO), Hussain Amru, on Monday evening declared that STO has filed at the court seeking MVR 2.4 billion owed to the company.

Speaking on local television station Raajje TV’s ‘Falasuruhee’ programme, Amru claimed that for the last four to five years, STO’s profits went "elsewhere", and that the irrecoverable payments have caused the company severe losses.

Amru claimed that STO's subsidiary, Fuel Supplies Maldives (FSM), was run without any regulations. He also stated that FSM has been selling fuel at lower rates compared to STO's prices, and that guidelines are now in place.

“There is quite a lot of money that cannot be recovered; around 40, 60 million,” said Amru.

He affirmed that the payments for fuel sold to Maldives Industrial Fisheries Company Limited (MIFCO) and Fenaka Corporation Limited were not settled as well.

According to STO, there were instances where facilities procured for futsal grounds and paving materials went unused, while their payments are still pending. The company has also faced losses due to pending rent payments from tenants that rent STO's buildings.

“The government and other public companies owe STO MVR 2.4 billion. This includes MVR 685 million incurred by Fenaka. The islands would not have power if not for the oil supplied by STO.

"We yield fuel for MIFCO constantly, but never get any returns even though STO acquires high interest loans to purchase fuel,” claimed Amru.

He stated that the company could not reap any profit unless all the "leaks" were plugged and dues paid.

MORE ON BUSINESS