PCB Report Reveals MVR 2.27 Billion Loss for SOEs

The Privatization and Corporatization Board (PCB) report has revealed that State-Owned Enterprises (SOEs) posted a loss of MVR 2.27 billion in the last quarter of the previous year. 

An increase in the number of employees within these companies led to salary expenses surpassing MVR 1 billion.

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https://x.com/pcb_gov/status/1810917502198895026

In its latest quarterly report on state-owned companies, the PCB noted that 32 SOEs earned a total revenue of MVR 13.27 billion last year. The State Trading Organisation (STO), the largest state-owned trading company, accounted for 30% of this revenue. However, after expenditures, the SOEs recorded a combined loss of MVR 2.27 billion.

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The report highlighted that the Housing Development Corporation (HDC) incurred the most significant losses, posting a deficit of MVR 3.23 billion in the last quarter. 

Key reasons for this include the stalling of the Hulhumale Yacht Marina Project, the failure of STELCO to receive funds for establishing a utility network in Hulhumale Phase II despite incurring expenses on it, and the financial impact of reducing rent and waiving penalties for non-payment of rent for Hiyaa flats.

The PCB report also indicated a notable increase in the number of employees in state-owned companies, which reached 34,369 by the end of last year, up from 30,866 in 2022. Government companies added 3,483 employees during the year. 

The companies with the largest workforce include Fenaka, the Maldives Transport and Contracting Company (MTCC), and Maldives Airports Company Limited (MACL). Fenaka added 682 employees within a year, MTCC’s workforce grew to 4,777 with 734 new additions, and MACL currently employs 4,031 individuals.