STO and Allied transfer MIFCO shares to government

STO and Allied Insurance transfer shares at MIFCO to the government on December 20, 2023. (Photo/STO)

State Trading Organization (STO) and Allied Insurance have officially transferred the shares they hold at the Maldives Industrial Fisheries Company (MIFCO) to the government.

The Maldivian administration has announced the decision to have MIFCO – which was run as a subsidiary of STO – run as a separate, fully state-owned enterprise, earlier this month.

Following the decision, STO and Allied Insurance officially transferred the shares they hold at MIFCO over to the government on Wednesday.

The signing of the share transfer agreements was witnessed by Finance Minister Dr. Mohamed Shafeeq and Fisheries Minister Ahmed Shiyam.

At a press conference on December 5, President Dr. Mohamed Muizzu said he made the decision to deliver his administration’s pledges to fishermen, to enhance and develop the fisheries sector.

He also announced plans to establish a separate corporative for fishermen, which will serve as one of MIFCO’s shareholders. He said the process will be carried out after MIFCO is turned into a separately run entity.

Having MIFCO run separately and establishing a fishermen’s corporative are two of President Muizzu’s electoral pledges.

MIFCO was established in early 1993, after renaming the FPID. MIFCO was made a subsidiary of STO during former President Abdulla Yameen Abdul Gayoom’s administration to address the issue of its high debt.