State Trading Organization (STO) Managing Director Hussain Amru revealed that their subsidiary company Maldives Industrial Fisheries Company Ltd (MIFCO) faced a loss of MVR 839 million over the past five years.
While speaking at STO's annual general gathering, Amru stated that in 2018 alone the company faced a loss of MVR 199 million.
"There is a main reason for the loss. Last year MIFCO bought 42,000 tonnes of fish. Out of this, value was added to only 30 percent of it. The rest of the 70 percent has to be frozen and sold abroad.
Amru went on to explain that on average the frozen fish would be sold for USD 1,925. However, in 2018, it was sold for USD 1,722, meaning that the company suffered a loss of USD 203.
Although last year the STO group made a profit of MVR 228 million, MVR 199 million from that had to be deducted to compensate for MIFCO's losses.
According to Amru, increasing the amount of canned fish is the way to increase profits.
After President Ibrahim Mohamed Solih took office, STO claimed that MIFCO suffered a loss of MVR 839 million during President Abdulla Yameen Abdul Gayoom's presidency.
Meanwhile, in November 2017, then CEO of STO Ahmed Shaheer said MIFCO was making profits. He maintained his claim even by the end of 2017.
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