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MIFCO To Be Privatized After Year Of Losses

The Auditor General has advised that privatizing the Maldives Industrial Fisheries Company (MIFCO) or handing over the management of the company to another company on a contract basis was a good way to counteract any negative effects the establishing of a floor price on fish by the Government could have.

The audit report on MIFCO released last Wednesday by the Auditor General Ibrahim Naeem said that the main reason MIFCO was not turning over a bigger profit was because the company had no say in the fish prices in the international market and because MIFCO was a Government company it had to set prices according to the wishes of the Government.

According to the report, the company managed to make a profit only during a single year between 1993 and 2002. It further said that the said restructuring of the company that had taken place in 2003 meant that the company had just given a facelift to their balance sheets and done nothing concrete towards developing the main objective of the company. The report further said that in its current state, the company would need at least nine years to turn a profit. It also noted that the company was in deep financial trouble due to its policy of giving credit to international customers.