State Trading Organisation (STO) announced Monday its decision to convert the debt laden state fisheries company into one of its subsidiaries, and vowed a turnaround of fortunes.
The Maldives government had decided to take over Maldives Industrial Fisheries Company (MIFCO) last Thursday, disclosing that the mismanaged company had amassed a staggering MVR300 million debt.
STO’s managing director Ahmed Shaheer told Mihaaru that its Board of Directors has agreed to convert MIFCO into one of its subsidiaries and commenced the legal process, which is expected to be concluded by the end of this week.
“We’ll work to assess MIFCO’s condition and improve the company in the future, God willing. But we can only know the best business module for it after the evaluation,” he said.
Shaheer added that as MIFCO will be operated as a subsidiary, its debilitating debt will not negatively impact the main company. He assured that MIFCO will bring in profit, particularly in earning foreign currency for STO.
Noting the necessity of foreign currency for STO which imports oil and several other products, Shaheer stated that the main source of foreign currency for the Maldives is exportation of fish. Thus, he expressed confidence that MIFCO will benefit STO as its subsidiary.
“It will be challenging to recover a company that is in such circumstances, but we have an experienced team.”
STO currently operates a number of subsidiary companies including Allied Insurance, Fuel Supplies and Maldives Gas.