Gov’t Proposes Regulation Requiring Chartered Accountants for State-Owned Enterprises

Finance Minister Moosa Zameer has announced plans to introduce new regulations mandating the appointment of chartered accountants in all government-owned companies. 

This initiative is aimed at improving financial management within these entities, as outlined by the minister during a press conference on public expenditure management.

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Minister Zameer emphasised the government’s commitment to reforming state-owned enterprises (SOEs), citing recent audits of companies like FENAKA Corporation, which revealed a lack of proper financial oversight and accounting practices. He acknowledged efforts by previous finance ministers to address these issues and confirmed that discussions with the President are underway to ensure the new regulations are implemented.

The minister also highlighted the need for a stronger legal framework to manage state assets within SOEs, ensuring greater accountability for those responsible. He pointed out that the presence of a specialised section within the finance ministry, alongside a separate legal institution, often results in legal conflicts.

Attorney General Ahmed Usham also addressed the ongoing legal challenges, pointing to ambiguities in representation for state-owned companies. He noted the lack of an adequate system to investigate corruption cases involving these entities, suggesting that a dedicated regulatory body could enhance oversight. Usham added that legal amendments are being considered to resolve these issues and improve governance within government-owned companies.