MNDF and Finance Ministry register joint venture

The Cooperative Society of MNDF (Sifco) and the Ministry of Finance have registered a joint venture at the Ministry of Economic Development today.

Company of Registrar of Economic Ministry Ali Sujau said that the new company is called ‘MNDF Welfare Company Private Limited’, and that 90 per cent of its shares are held by Sifco, while the remaining 10 per cent are held by Finance Ministry.

He said that the main objectives of the joint venture are to run businesses to improve MNDF welfare services, run businesses related to the tourism industry, and conduct import–export trade.

Sifco was created jointly by MNDF and individual officers of MNDF, and is currently active in retail trade.

Minister of Finance Abdullah Jihad said today that there are no legal obstructions to establishing a joint venture with Sifco.

It is understood that the new company will invest mainly in the tourism industry, and the plan is to award several islands to the company to develop resorts.

MNDF Spokesperson Lieutenant Colonel Abdul Raheem said that the State budget allocated to MNDF is not sufficient for its welfare services, and that the plan therefore is to conduct expansive business activities to fincance the welfare services.

The government has participated in several joint ventures in the past; however, most of them have not been profitable.