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STO spent MVR 154 million on debt-laden fisheries company

Fathmath Shaahunaz
19 December 2018, MVT 12:54
An outlet of Maldives Industrial Fisheries Company (MIFCO) in Male City.
Fathmath Shaahunaz
19 December 2018, MVT 12:54

State Trading Organisation (STO) has till date expended MVR 154 million on its subsidiary Maldives Industrial Fisheries Company (MIFCO), revealed STO's Managing Director Hussain Amru.

The decision to convert the state fisheries firm into a subsidiary of STO was made in 2016, when the company’s debt stood at a staggering MVR 300 million.

In a recent interview to local media Mihaaru, Amru stated that despite the current government's intention to establish MIFCO as an independent firm again, the company could operate on its own only after it recovered from debt and became profitable. He had noted that this would include restructuring the company and inviting new investments, which need time to take effect.

Amru had further highlighted that MIFCO currently obtains all loans from STO, as no bank will lend to the debt-laden company.

President Ibrahim Mohamed Solih also recently touched upon MIFCO's debilitating situation. Addressing the public on the occasion of Fishermen's Day, the president vowed to make MIFCO a profitable company over the next year and half.

So far MIFCO has issued total MVR 800 million to local fishermen in 2018 despite financial struggles, million as financial aid to MIFCO since 2013.

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