President of Privatisation and Coporatisation Board (PCB) Hamdhy Ageel has disclosed that the projects handed over to state-owned enterprises by the previous administration, were beyond the capabilities of the companies which caused them to incur losses.
President of PCB revealed that while the scope of the projects entrusted to the companies were beyond the financial capabilities of the companies, adding the previous administration had not provided the necessary financial assistance to initiate the projects as well. He noted this resulted several SOEs to incur huge losses and financial deteriorations. Several companies including Fenaka Corporation Limited and Maldives Transport and Contracting Company (MTCC) have revealed the huge debt accumulated following the poor decisions of the previous managements.
Speaking on a programme aired on PSM News, Hamdhy said that the Corporate Social Responsibility (CSR) policy varied between companies, stressing the importance of having a fixed standard for all companies. He assured a standardised CSR policy to be implemented in the near future.
Furthermore, Hamdhy highlighted PCB's primary target to ensure that all firms are profit-running and have the ability to provide quality services, benefiting the public. He additionally underscored the ongoing research to achieve the overarching goal. Similarly, PCB has introduced the Governance Award at incentivising state-owned enterprises (SOEs) to strengthen their management systems. Companies that have achieved the award will receive the prizes by the end of this month.
PCB was established in 2013 to strengthen the management systems of companies. The principal initiatives of the company include monitoring companies while drawing and implementing policies, guidelines and frameworks to achieve its goals.