Managing Director of State Trading Organization Plc., Hussain Amru Mohamed Rashad, has said that a case has been submitted at court against two state companies for debt owed to the company. Both Fenaka Corporation Ltd. and Maldives  Industrial fisheries Co. Ltd. (MIFCO) had incurred a debt to STO during the previous administration of President Abdulla Yameen.

Speaking on Rajje TV’s “Fala Surukhee” program, Amru said that both Fenaka and MIFCO had failed to make payments after receiving fuel from STO over the past four years. He added that there had been various difficulties faced at STO due to these pending payments.

The MD of STO reiterated that while Fenaka Corporation Ltd. owes MVR 685 million, MIFCO also owed a great sum to the company. Amru had however, not revealed the specific amount owed by MIFCO.

Amru said that holding the supply of fuel to Fenaka Corporation Ltd. will stop operations of engines in local islands. Additionally, he said crashing the supply of fuel to MIFCO would put a stop to the sale of fish caught by local fishermen. As such, he said that STO is currently reduced to purchasing fuel on loans.

The MD of STO said that the cause of this debt had been orders given from higher up with a combination of pressure from members of Parliament.