Tourism Minister Moosa Zameer have said that MDP sold shares of MWSC to Hitachi at a loss and also the agreement says that the company has to make 12 percent profit.
The minister said that 20 percent of the company’s shares is valued at 25 million dollars but MDP administration sold it for 16 million dollars. In addition he said that the agreement says that MWSC should make 12 percent profit every year.
Zameer said that as a result, they always have to maintain a 12 percent return rate of profits and cannot reduce the cost of service even if the government intends to do so.
Zameer said that since the shares were sold to a company of a friendly nation, it is not easy to terminate the agreement. He said that if they want to terminate then they would have to pay a lot of money to buy back the shares. Also, as per the agreement they cannot even conduct board meetings without them.
He said that for all these reasons if MWSC is contracted with providing water for Hulhumale’, it will not be possible to provide services at affordable rates.
At first MWSC was formed with a Danish company. Later, the government acquired the control of the company. MDP administration sold shares while it was a hundred percent Maldivian state owned company. There has been no significant developments even after shares were sold.
MDP sold MWSC shared at a loss- Have to make profit of 12% - How can we reduce the cost of service?: Zameer
