More than thirty corporations to be dissolved

The government has commenced work into dissolving more than thirty corporations established by former President Nasheed’s administration.

Spokesperson of President’s Office Abbas Adil Riza said that health corporations, utilities companies and development corporations established in various regions of Maldives will be dissolved. The reasons behind doing so is to reduce government expenditure, and because these institutions are no longer being monitored.

He said that an assessment will be conducted by the Auditor General before they are dissolved, and that the valuation process of the corporations is already underway.

Riza said that more than Rf 900 million was spent on salaries to employees of the corporations by the end of 2009. The companies were set up in such a manner that they are not held accountable to the Parliament, and their balance sheets are not included in the state balance sheet. He noted that civil servants employed at the corporations will not lose their jobs.

“The purpose of creating these corporations was to give political posts and salaries to members of former ruling party Maldivian Democratic Party (MDP). They were financed from ‘miscellaneous expenses’ of Finance Ministry’s budget. Only the board members of the corporations will lose their jobs when they are dissolved,” Riza said.

The government has decided to dissolve all health corporations and provide health services in the atolls under health ministry, and to dissolve all utilities companies and provide these services through one state company.