Gov’t to Establish New Company to Alleviate Pressure on MTCC

The government has taken a significant step to address the mounting workload of the Maldives Transport and Contracting Company (MTCC) by deciding to set up a new company. 

This development emerged during a cabinet meeting held yesterday.

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Abdulla Nazim Ibrahim, the Public Policy Secretary at the President’s Office, highlighted in a press briefing on Sunday’s cabinet decisions that the MTCC is currently grappling with an excess of 100 projects. Consequently, the cabinet opted to establish a second company with a similar scope of work to ease the burden on MTCC and accelerate project timelines.

Explaining the rationale behind the decision, Ibrahim stated, “MTCC has more projects than one company can handle. 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.”

In addition to addressing the workload issue, the cabinet also deliberated on the future of state-owned enterprises experiencing financial challenges.

Ibrahim reported that, based on a presentation from the Finance Ministry, the cabinet decided to review the policies for determining company rankings within three months. The objective is to classify companies as national and public entities or identify those suitable for partial ownership through share sales. Companies flagged for underperformance will be given a six-month window to enhance their operations.

Furthermore, the government is committed to formulating and implementing an effective policy for the establishment of new companies within the next six months.

Ibrahim outlined the future course of action, stating, “It was decided to restructure underperforming companies or to merge them if appropriate, after the six months.”

This move aligns with the administration’s ‘Hafuthaa 14’ roadmap, underscoring its commitment to making state-owned enterprises financially viable. The government aims to enforce these changes promptly to ensure a more streamlined and efficient operation of public and national companies.