President Dr Mohamed Muizzu has announced plans to restructure several State-owned Enterprises (SOEs) and strengthen Government shareholding in key companies to enhance corporate governance, improve operational efficiency and ensure more cost-effective service delivery.
The President made the announcement at a press briefing held at the President’s Office this afternoon.
The President announced plans to dissolve two major State-owned corporations. FENAKA Corporation Limited will be dissolved, with its utility services to be integrated into the State Electric Company (STELCO). Similarly, the Road Development Corporation (RDC) will be dissolved, with its operations to be consolidated under the Maldives Transport and Contracting Company (MTCC).
The President stated that the restructuring would enable the respective companies to operate at an optimal scale, reduce duplication in staffing and eliminate unnecessary expenditure.
The President also announced that the Government has initiated efforts to acquire a majority shareholding in Dhivehi Raajjeyge Gulhun (Dhiraagu) and to reacquire shares in the Maldives Water and Sewerage Company (MWSC) that were previously sold to foreign entities.
He noted that the decisions regarding Dhiraagu and MWSC were made following deliberations with the Cabinet, as part of efforts to strengthen the Government’s ownership and governance of strategically important State-owned enterprises.
President Dr Muizzu stated that efforts to reacquire the previously divested shares in Dhiraagu would enable the Government to hold a 51 per cent stake in the company. He further noted that MWSC is a vital State entity and that efforts have commenced to transition the company into a fully State-owned corporation.
The President emphasised that these structural reforms would contribute significantly to strengthening corporate governance, improving operational efficiency and ensuring more effective utilisation of State resources.
While noting that substantial work has already been undertaken to strengthen and streamline State administrative functions, the President highlighted that further measures would be implemented to ensure that SOEs operate within a more efficient, streamlined and financially sustainable framework.
