SOE reform efforts will begin in two weeks time: Minister Shafeeq

Assessments of all state owned enterprises (SOEs) will be completed and submitted to the economic council, with cost reduction measures to be commenced within the next two weeks, revealed Finance Minister Dr. Mohamed Shafeeq.

Speaking at the Public Accounts committee of the parliament yesterday, Minister Shafeeq said that the biggest state expense goes towards SOEs and that approval has now been granted by the cabinet for the measures needed to be taken for the companies.

He detailed that individual company assessments are currently being carried out and that it is scheduled to be completed within the next two weeks. After that, necessary measures will be implemented, the minister said.

"[Some SOEs] are at the point where operations are being disrupted because the services needed are not being provided properly. After paying salaries, SOEs also required state assistance to perform core functions. They are not able to take the responsibility of loans and operate as SOEs independently. It's much more inefficient than that," he explained.

According to the minister, the assessments being carried out now will determine whether the SOEs would go for a public private partnership and open up to the public for share purchases.

"We want to do this within the year. That way cost would be significantly reduced," he said.

SOEs play a major role in the economic activities of the Maldives. Currently there are over 33,000 employees working in three SOEs of the country.