Twelve government companies post combined MVR 281 million loss in first quarter

Twelve government-owned companies recorded a combined loss of MVR 281 million in the first quarter of this year, according to figures released by the Privatization and Corporatization Board (PCB).  

The Road Development Corporation (RDC) reported the largest loss, amounting to MVR 113.73 million. Island Aviation followed with a loss of MVR 46.36 million, while Fenaka, already facing corruption allegations, posted a loss of MVR 33.72 million.  

MTCC, which had previously been profitable, also slipped into the red. The company reported a loss of MVR 19.66 million in the first quarter, a sharp increase compared to the MVR 3.8 million loss in the final quarter of last year.  

Other companies that reported losses include:  

• Addu International Airport Company: MVR 17.55 million  

• Post Ltd.: MVR 2.26 million  

• Public Service Media (PSM): MVR 5.72 million  

• Fund Management Corporation: MVR 7.15 million  

• Hajj Corporation: MVR 6.60 million  

• Business Center Corporation (BCC): MVR 3.65 million  

• Fahi Dhiriulhun Corporation: MVR 14.05 million  

• TradeNet: MVR 10.55 million  

The PCB report noted that government-owned companies employ more than 37,900 people, significantly higher than the 30,436 employees in the civil service.  

Meanwhile, Finance Ministry data shows that MVR 1.9 billion has already been spent on government-owned companies this year, overshooting the budgeted MVR 378.3 million by MVR 1.6 billion.  

As the state continues to spend heavily on loss-making enterprises, concerns persist over corruption and politically motivated recruitment practices within these companies.