Maldives Industrial Fisheries Company (MIFCO) was reallocated as a subsidiary of the largest trading company in the country, State Trading Organization (STO) in September 2016 by the Maldives Cabinet, following discussions on a paper regarding the matter. Established in 1993, MIFCO was a perpetual liability; repeatedly mismanaged, having amassed a staggering amount of debt and unable to turn a profit despite being one of the key manufacturers and exporters of frozen fish and fish products in the Maldives.
At the time of reallocation, MIFCO owed MVR 6 million to local fishermen for the purchase of fish on credit terms, and another MVR 100 million to STO for the purchase of fuel; two resources which MIFCO is entirely reliant on for daily operations. Converting MIFCO into a subsidiary of STO was a practical decision, noted by Fisheries Minister Dr. Mohamed Shainee, as integrating the two companies would ‘yield benefits and greatly reduce the cost of operations for MIFCO’.
The Cabinet also passed a motion to compensate the fishermen for the money owed, and MIFCO was handed over to STO for complete restructuring, ready for a fresh start.
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Source URL: Corporate Maldives