Yaugoob: SOE staff dismissals being carried out under PNC’s steering committee’s instructions

Former Dhaandhoo MP Yaugoob Abdulla has alleged that employees of State-Owned Enterprises (SOEs) are being dismissed under the government's "right-sizing" initiative based on recommendations from the ruling People's National Congress (PNC) Steering Committee, often without the knowledge of senior management within the companies.

Speaking on SSTV's ‘Baaru Hathareh’ program, Yaugoob sharply criticized the government's current policies. In this regard, he said that while President Dr. Mohamed Muizzu had pledged to reduce the number of political appointees by 228, recent appointments to senior political and corporate positions suggest the opposite. According to Yaugoob, the number of political appointments appears to be increasing beyond the limits previously promised.

Addressing the process of workforce reductions at SOEs, Yaugoob claimed that employee performance is not being assessed by the companies themselves. Instead, he alleged that PNC steering committees on individual islands are deciding which employees should be dismissed. He argued that the practice has led to the removal of experienced, long-serving employees while politically appointed staff continue to retain their positions.

"Employee performance is not being evaluated by the companies they work for; it is being handled by the PNC steering committee in each island," Yaugoob described the dismissal process.

Yaugoob further alleged that numerous individuals remain on the government payroll through major companies in both the islands and Malé, earning monthly salaries ranging from MVR 20,000 to MVR 30,000 despite having no clearly defined job responsibilities or designated office space. He claimed these appointments were made solely for political purposes.

Referring to remarks made by Dhiggaru MP Ahmed Nazim during Monday's parliamentary sitting, Yaugoob cited the example of Maldives Ports Limited (MPL), which was said to have approximately 600 employees in excess of its operational requirements, resulting in additional expenditure of more than MVR 20 million. He expressed concern that the government had not taken sufficient steps to reduce such spending

Nazim had previously stated that the country's current economic situation requires the "right-sizing" of SOEs to ensure their long-term sustainability.

As part of broader efforts to reduce expenditure amid rising national debt, many SOEs continue to rely on state subsidies while operating at a loss. In April, the Ministry of Finance instructed SOEs to reduce their workforce by 33 percent, with the Privatization and Corporatization Board (PCB) directing that the restructuring process be completed within three months.