At a cabinet meeting held today, the cabinet has decided to run MIFCO under State Trading Organisation STO. At the beginning also MIFCO was managed by STO.
At a press conference held today by the Youth and Economic Council of the President’s Office the chair of the council Ahmed Zuhoor said that this change was brought because STO has the capability to solve the many financial problems faced by MIFCO. Also that STO is a very profitable company and to use that experience to make MIFCO a profitable company as well.
Zuhoor said that MIFCO needs a lot of fuel and fuel is imported by STO. “Now what happens is MIFCO buys fuel from STO and they add a profit to it and sell it to the fishermen. With this change fisherman will get fuel directly from STO at a cheaper price” said Zuhoor.
Speaking at the conference, Tourism Minister Moosa Zameer said that, MIFCO also needs a lot of foreign currency and STO being the parent company of MIFCO it will be profitable for STO as well.
Finance Minister Ahmed Munawwar said that it is not feasible to operate companies with government subsidies every year and if managed under a good business model, the companies can be managed without subsidies. He further said that STO has the capacity to run MIFCO in a profitable business model.
MIFCO was changed under the management of STO with all their staffs as well. Tourism Minister Moosa Zameer said that within 45 days MIFCO will be managed by STO.
With this change, the government will pay the 2 million Rufiyaa which MIFCO owes to the fishermen today.
STO to manage MIFCO again.
