MIFCO registered with STO, Allied Insurance as shareholders

Maldives Industrial Fisheries Company (MIFCO), which was recently made a subsidiary of State Trading Organization (STO), has been registered with STO and Allied Insurance as its shareholders.

Government made the decision to make MIFCO, which was suffering heavy losses, a subsidiary of STO on September 29.

Economic Council said in its statement after announcing the structural change that the decision was mutually beneficial to both companies.

It said that MIFCO spent the most on fuel, which is imported into the country by STO; while STO has the need for the foreign currency earned by MIFCO with its export of fish products.

STO announced that MIFCO has been registered with Ministry of Economic Development on October 11, with 99.99 percent shares owned by STO, and 0.01 percent by Allied Insurance.

“We, STO believe re-registering MIFCO as a subsidiary of STO will only strengthen STO Group of Companies, given MIFCO had previously operated as a department of STO. With MIFCO, STO Group will be able to broaden our fuel business. And at the same time, STO Group will find it easier to purchase foreign currency,” read the statement issued by STO.

When MIFCO was made a subsidiary of STO, it had been suffering heavy losses and owed fishermen MVR 2 million in debt.

Economic Council announced that the Cabinet had decided to settle the debt through the State budget and give MIFCO a fresh start under STO.