MIFCO merged with STO, MVR 2 mn debt to be settled

Maldives Industrial Fisheries Company (MIFCO) has been merged with State Trading Organization (STO).

The decision was announced in a press conference held at President’s Office this Thursday, by Minister of Fisheries and Agriculture Dr. Mohamed Shainee.

Dr. Shainee said that the decision was made after discussion within the Cabinet, which concluded that a merger was in the best interest of both the companies.

Shainee noted that while MIFCO spent the most on fuel, STO was the main supplier of fuel to the country. And that STO could make could use of the USD made by MIFCO via sale of fish products.

He said that MIFCO had been running at a huge less, and was financially indebted, even to fishermen.

“MIFCO has MVR 2 million in credit pending to fishermen. The Cabinet has decided today to settle the debt to fisherman from the budget immediately. And give MIFCO a fresh start under STO,” said Shainee.

Speaking during the press conference, Minister of President’s Office, Ahmed Zuhoor said that the large amount of money spent by MIFCO in subsidies to fishermen had leaking into the huge puddle of ‘inefficiency’ by the company.

Zuhoor said that the merger meant that subsidies to fishermen would no longer be necessary.

“We guarantee you that this move will be beneficial to the fishermen. Maldivian fisheries industry will be run according to the principles of demand and supply within the corporate sector. Profits and losses within the current structure of MIFCO will be evaluated and re-designed to maximize profitability,” he said.

Zuhoor also noted that accumulation of resources would mean a cut down on double spending.