Finance Minister Ibrahim Ameer has said that only 11 out of the 33 commercial state companies make a profit.

Answering questions about the losses of state companies during the meeting of the budget committee today, the Minister noted that the state receives dividend from only 11 companies. He however did not reveal the names of said 11 companies.

Hanimaadhoo MP Abdul Qafoor Moosa noted that it was unacceptable for giant companies like STO to pay a dividend of just MVR 55 million. He further noted that the state has subsidised staple foods for the company, letting them establish a greater monopoly on the industry.

The lawmaker further said that the state spending MVR 5 million per month on waste management is a testament of WAMCO not being utilised properly and added that while MVR 56 million has been set as subsidies for the next year, assigning the work to three private companies would be a better option.

MP Moosa further highlighted that the provision of MVR 210 million to STELCO by the state has had no satisfactory change in the electricity prices for the citizens. He further asserted that the state had invested billions in companies like the Greater Male' Corporation and HDC, with no money being returned as a profit.

Answering the concerns of MP Moosa, Minister Ameer noted that several things have been budgeted in the 2020 budget to turn these companies into profitable companies. He also noted that subsidies are being reduced on a year to year change dependant on individual company needs.

He also noted that the state will entertain the idea of assigning works to private companies should one is in existence, in the future as well.