Govt to establish new company to relieve pressure on MTCC

The Maldivian government has decided to establish a new company to relieve the pressure on Maldives Transport and Contracting Company (MTCC).

The decision was made during a cabinet meeting on Sunday.

In a press briefing regarding Sunday’s cabinet decisions, Abdulla Nazim Ibrahim, the public policy secretary at the President’s Office, said that the MTCC currently has over 100 projects piled up.

He said the cabinet therefore decided to establish a second company to undertake the same type of work, in order to relieve the pressure on MTCC and expedite projects.

“MTCC has more projects than one company can handle,” he said.

“MTCC is already one of the companies that delivers well. But the cabinet made the decision because it has more work than one company can handle.”

The cabinet also discussed what to do with state-owned enterprises that aren’t producing a profit.

Nazim said that following deliberations on a paper presented by the Finance Ministry, the cabinet decided to revise the policies on determining the ranking of companies within three months, and identify the companies that will be run as national and public companies, and companies that will have shares sold.

He said the companies will be given six months to improve their performance. And the government will be formulating and enforcing an efficient policy on establishment of new companies within the next six months.

“It was decided to restructure underperforming companies or to merge them if appropriate, after the six months,” he said.

The promise to make state-owned enterprises profitable is part of the administration’s ‘Hafuthaa 14’ roadmap.