Category: Business & Tourism

Maldives business news

Fisheries minister reveals details of fishermen’s allowance

The Ministry of Fisheries and Agriculture has compiled procedures under which fishermen can apply for the government’s scheme for an allowance of MVR10,000 (USD 649) for fishermen during lean months.

Provision of MVR10,000 to fishermen ‘regardless of catch’ was a campaign pledge of the ruling Progressive Party of Maldives (PPM) during the 2013 presidential elections.

Speaking at a press conference held on Sunday, Minister of Fisheries and Agriculture Dr Mohamed Shainee stated that the scheme will commence from Tuesday, April 1.

“The objective of this scheme is to further aid the fisheries industry to become a main pillar in strengthening the country’s economy. We are trying to give support and assurance to fishermen that they can maintain their careers in fishing,” Shainee stated.

“More than a form of social protection, this scheme is more a means to further develop the fisheries industry economically. Through this scheme, we are assuring an income for the fishermen”.

The minister stated that only tuna and yellowfin tuna fishermen are eligible to participate in the scheme during its initial stages.

“However, we are at the moment unable to include other forms as we do not have the statistics on how much they generally earn. Nevertheless, other fishermen will also be able to participate in the scheme,” Shainee added.

Under the newly comprised procedures, the ministry categorised tuna and yellow fin tuna fishing vessels into three categories: vessels smaller than 45 feet in length, vessels between 45 and 65 feet in length, and vessels larger than 65 feet in length.

Under the scheme, fishermen working on vessels smaller than 45 feet in length are to get an allowance of MVR3500 (US$227) in return for a monthly premium of MVR350 (US$23) paid to the state.

Fishermen working on vessels between 45 and 65 feet in size are eligible to receive an allowance of MVR5000 (US$324), while needing to pay a monthly premium of MVR400 (US$26).

Those working on larger vessels – over 65 feet in length – will be given the full allowance of MVR10,000 (US$649), and are required to pay a premium of MVR500 (US$32).

The premium fees are to be paid up front for a year in order to participate in the scheme. The minister stated that the government is working to arrange the receipt of payments through island councils.

“As over 90 percent of Maldivian fishermen work in vessels of over 65 feet in size, we have targeted the full amount of MVR 10,000 for them,” Shainee told press today.

“However, this government has not neglected any fisherman. By this I mean that, although our pledge says MVR10,000 for fishermen on all lean months, we have made the scheme inclusive of even the remaining 10 percent of fishermen,” Shainee explained.

Minister Shainee expressed confidence that the scheme would encourage fishermen to engage in fishing even during the lean months.

It was further revealed that discussions are currently being held to hand over the management of the scheme to the National Social Protection Agency.

It was noted that 722 fishing vessels are currently in the state registry, while 11,894 fishermen are registered as working on these vessels – only 5 percent of them are listed as working on vessels less than 45 feet in length.

According to the ministry, over 80 percent of the registered fishermen work on vessels larger than 65 feet in length. In a previous interview with Minivan News, Dr Shainee had noted that encouraging fishermen to use for economically sized vessels would improve the industry’s profitability.

On Saturday, President Abdulla Yameen revealed at a political rally that application forms for the scheme will be available from April 1 onwards. He further stated that the allowance will be released to fishermen before the end of May.

Yameen further revealed that discussions are being held between the State Trading Organisation (STO) and the Indian government to arrange the supply of petroleum products at a lower price.

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Fishermen invited to register for MVR10,000 allowance on April 1

Application forms will be available on April 1 for fishermen to register in the government’s scheme to provide MVR10,000 (US$648) during lean months, President Abdulla Yameen said last night.

Addressing supporters in Gaaf Dhaalu Thinadhoo at a rally held to celebrate the Progressive Coalition’s victory in the parliamentary polls, President Yameen said the allowance will be released to fishermen before the end of May “when all the calculations and documentation are done.”

Marinas for fishermen would meanwhile be complete by the end of the year, Yameen said.

A MVR10,000 allowance to fishermen “regardless of catch” during lean months was a campaign pledge of candidate Yameen and the now-ruling Progressive Party of Maldives (PPM).

In an interview with Minivan News in January, Fisheries Minister Dr Mohamed Shainy explained that the allowance will be provided through an insurance scheme.

“If you look at the skipjack fishing statistics for last year, you will see three or four months which are very difficult for the fishermen. The real goal of this is sustainability,” he said.

“So the aim of the government is to ensure that even during these difficult months fishermen stay in the industry. For that reason, during those few months we want to give a payment so that they can do their basic necessities, so they can fulfil their daily obligations towards their family. The MVR10,000 scheme is a top-up system.”

He stressed that the MVR10,000 was not a subsidy as the productivity of the fisheries industry has been increasing since the downturn in 2004.

“So now we need to make the industry stand alone and be more vibrant and shock-proof to absorb these shocks. We need to devise a way to get people’s minds set on the idea that they can work in the industry. The real reason is the sustainability of the fishermen in the industry to keep them in the field during this low season,” he said.

Cheaper diesel

According to the President’s Office, President Yameen also said that discussions were ongoing between the State Trading Organisation (STO) and the Indian government to arrange the supply of petroleum products.

When the talks are concluded, Yameen said the price of oil would fall during the next two months.

Duing Indian Foreign Minister Salman Khurshid’s visit to the Maldives last month, an agreement was reached to supply diesel, petrol, and aviation fuels “on favourable terms” from the Mangalore Refinery & Petrochemicals Ltd, a subsidiary of India’s state-owned Oil and Natural Gas Corporation.

Following President Yameen’s state visit to India in January – his first official overseas trip since assuming office in November – senior government figures described Indo-Maldives ties as being “as strong as they were during [former President Maumoon Abdul] Gayoom’s time in power”.

Meanwhile, in his speech last night, President Yameen reportedly said that the government has undertaken efforts to attract foreign investors to the country, which would create jobs for unemployed youth.

Among the projects in the pipeline for Thinadhoo that President Yameen announced last night included road construction, land reclamation, construction of a sports arena, and broadening tourism.

With the prevailing political stability and the mandate given to the current administration by the public in the presidential and parliamentary polls, Yameen said he believed that the government could commence mega-projects and transform the Maldives to “this region’s Singapore.”

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Government owed over MVR250 million in unpaid dividends, audit reveals

The government is owed MVR256.9 million (US$16.6 million) in unpaid dividends from state-owned enterprises, the audit report of the Ministry of Finance and Treasury for 2012 has revealed.

In the report (Dhivehi) made public yesterday, Auditor General Niyaz Ibrahim recommended collecting the dividends within a period of one month.

The unpaid dividends include MVR5.1 million (US$330,739) owed by Island Aviation Services, MVR78.9 million (US$5.1 million) owed by the Malé Water and Sewerage Company, MVR167.8 million (US$10.8 million) owed by the State Trading Organisation (STO), and MVR5 million (US$324,24) owed by the Maldives Transport and Contracting Company (MTCC).

The auditor general also recommended regularly monitoring the finances of government-owned companies, seeking audited financial statements within six months of the end of the financial year, and collecting dividends without delay.

While the ministry was required to submit a consolidated financial statement for 2012 inclusive of the departments operating under its remit, the report noted that the ministry prepared separate statements for itself and the departments.

Moreover, the annual financial statements did not include details of loans and foreign aid, the report stated.

As the auditor general was therefore unable to offer his professional opinion on the financial statements for 2012, he recommended taking action against the responsible financial officer under articles 47 and 48 of the Public Finance Act for the lapse.

Highlighted cases

Among other issues flagged in the report, auditors found that the Finance Ministry spent MVR858.5 million (US$55.6 million) out of the budget code assigned for providing capital to government-owned corporations.

The funds were released in violation of the constitution, the Public Finance Act, and regulations under the law, the report stated.

Article 96(c) of the constitution states, “No supplementary expenditures shall be added to an approved budget without further approval by the People’s Majlis. Expenditures included in the budget shall be applied solely for the specified purpose.”

The funds earmarked for capital expenditures of government-owned corporations in the 2012 state budget was MVR30.4 million (US$1.9 million), the report noted.

Of the funds released as capital for government-owned companies, auditors discovered that MVR840.6 million (US$54.5 million) was used to pay salaries for board members and staff and to cover other recurrent expenditures.

The ministry’s actions defeated the purpose of allocating funds for specified expenditures in the budget, the report stated.

As state-owned enterprises were not required to comply with public finance regulations, the report warned that releasing the funds could be “wasteful” or “facilitate corruption” in the absence of a mechanism for holding senior officials of the companies accountable for expenses.

Moreover, falsely including such a large amount of money as capital expenditures in the annual financial statement was “a serious deception,” which casts doubt on validity of the statement, the report noted.

The auditor general recommended taking legal action against the officials responsible for authorising the release of funds to the state-owned enterprises, which included health corporations, utility companies, regional airport companies, the Bank of Maldives, the State Electricity Company, STO, MTCC, Aasandha, and Fuel Supply Maldives.

The auditor general also cautioned against corporatisation of government services without assessing feasibility and determining financial and administrative challenges.

Abuse of authority

In another case highlighted in the report, auditors were unable to verify whether MVR254,898 (US$16,530) worth of expenses for overseas trips by senior officials were made for state purposes.

The Finance Ministry refused to share documents related to the trips “despite repeated requests,” the report stated.

The auditor general recommended that the expenses should be further investigated by the Anti-Corruption Commission.

Auditors also discovered that the Finance Ministry purchased a number of items without a bidding process in violation of public finance regulations, which requires a public tender for procurement of items worth MVR25,000 (US$1,621) or higher.

The items included a Macbook Air, two coffee machines, an air-conditioner, eight computer systems, and one iPad.

Meanwhile, in November 2012, a senior project officer at the Ministry of Home Affairs was hired as a consultant for the Finance Ministry to formulate projects for a period of two months.

While an announcement seeking a consultant was made on November 18 and an employment contract was signed on November 21, auditors found that the consultant began working at the ministry on November 12.

Auditors could not find any documents showing that the consultant worked on the projects during the contract period.

Moreover, in December 2012, Finance Minister Abdulla Jihad asked the ministry’s human resource committee to create a post for a project designer at the minister’s bureau.

The Civil Service Commission (CSC) was requested to create the post on December 24 despite misgivings of members on the human resource committee, the report stated.

When the job announcement for the ‘director project designing’ was made on December 27, the report noted that only one person applied for the post.

The interested candidate was the same individual previously hired as a consultant, the report revealed.

The unnamed individual was appointed to the post on January 28.

The auditor general recommended that the case should be investigated by the ACC as the hiring of the consultant constituted abuse of authority to benefit a third party.

Finance Minister Jihad – who was appointed to the post in February 2012 following the controversial transfer of presidential power – has meanwhile denied the allegations in local media.

Jihad told newspaper Haveeru that the project director post in question was a civil service job, over which he did not have hiring or firing powers.

“It is done in accordance with the rules by the relevant officials at the ministry. I don’t get involved in such matters. The auditor general releasing such a report is very irresponsible,” he was quoted as saying.

Jihad has also previously criticised the auditor general over a report released in December which concluded that an MVR300 million loan was secured in 2012 from the Bank of Maldives in violation of public finance laws.

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Road Development Corporation purchased goods worth MVR2.2 million without bidding process, audit reveals

The Maldives Road Development Corporation (MRDC) purchased material worth MVR2.2 million (US$142,671) without a bidding process, the 2011 audit report (Dhivehi) of the 100 percent government-owned company made public last week has revealed.

Noting that the MRDC has not formulated procurement rules to date, Auditor General Niyaz Ibrahim recommended drafting regulations in consultation with the Finance Ministry within a period of one month.

“As a large amount of the company’s money had been spent for various purpose without establishing sound rules, and as we believe the company’s board members have been negligent in carrying out their responsibility of protecting the company’s resources, action should be taken against [the board members] to hold them accountable,” the auditor general recommended.

The MRDC was formed in August 2010 by the administration of former President Mohamed Nasheed to facilitate road construction under a sustainable business model.

As the company failed to compile its financial statement for 2011, the audit was based on a review of a sample of the MRDC’s business transactions as well as “problems related to performance and governance.”

In the absence of the financial statement, the report stated that the auditor general’s office was unable to assess the company’s financial health, assets, and the results achieved during the year.

The report further noted the lack of a mechanism to collect information required to compile the financial statement, adding that “basic documentation” of business transactions was not properly maintained.

The audit office recommended legal action against the officials responsible for failing to submit the financial statement for auditing as mandated by the company’s charter and the Company’s Act.

Moreover, as the MRDC had not maintained an updated registry of its assets, the report stated that auditors could not verify whether all assets purchased for the company’s purposes remained in its inventory.

The absence of an updated registry leaves open the opportunity to sell off the MRDC’s assets, the report noted.

The auditor general also recommended establishing a sound accounting system to record daily financial transactions.

While MVR175,039 (US$11,351) was spent in 2011 as overtime payments for staff, the report noted that auditors could not verify whether the payments were made for services received.

Moreover, upon scrutinising available financial records, auditors discovered that bills and invoices of materials sold by MRDC did not include purchase orders from customers while quotations sent to businesses were not authorised by senior officials.

The MRDC audit came on the heels of a damning report on the Works Corporations, which concluded that the government-owned corporation was mismanaged and had not served its purpose.

Of the 34 infrastructure projects awarded to the company, the report noted that only one had been completed.

Meanwhile, the audit report of the state-owned Waste Management Company released in December revealed that a board member had embezzled MVR610,000 (US$ 39,354) by doctoring cheques.

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“Huge support” for halal certification, says Islamic Ministry

The Ministry of Islamic Affairs’ has claimed that the new halal certification program for local fish products is receiving “huge support” from local fish processing companies, the ministry has said yesterday.

Denying reports published in local news outlet Haveeru of a lack of support for the programme , the ministry said that issuing halal certificates for five different products from ‘Felivaru’ company is in it’s final stages.

The ministry also stated that “famous Maldivian fish processing companies such as MIFCO” are also in the process of submitting necessary documentation in order to acquire the halal certificate

Training of halal assurance officers to inspect factories has begun, and ministry teams have made visits to “successful” halal industry countries such as Malaysia and Singapore.

The Haveeru article in question – published yesterday – quoted Permanent Secretary of the Islamic Ministry Mohamed Didi as saying that Felivaru was the only company to have shown an interest in acquiring the certification.

Didi was reported as saying that the reason for this could be that such a certificate is not important for their export markets.

According to the article, a team from the ministry had travelled to the Felivaru fish processing factory to check if the process and ingredients used are ‘halal’, with Didi saying that certification would open doors to export Maldivian fish products to middle-eastern markets and would increase the value of such products.

After the EU declined to extend duty-free status on Maldivian fish exports last November, the government has been seeking alternative markets for Maldivian fish products.

Foreign Minister Dunya Maumoon at the time said the decision was connected to Maldives’ reservations towards freedom of religion and other conventions before noting that the Maldives is “not running out of friends in the international community”.

Since then, the government has said it is analysing new markets for such as middle-eastern and Malaysian markets for Maldives fish exports.

Earlier this week, Vice President of the Maldives National Chamber Of Commerce and Industry Ismail Asif said that Maldivian fishermen intended to stage a protest against the EU’s trade policies.

Meanwhile, the Islamic Ministry’s ‘Fiqh Academy’ issued a fatwa this week stating that kosher meals, while halal, are inadvisable in Shariah. The ruling suggested that the import of such goods would “introduce and spread such a religious slogan of the Jews into an Islamic country like the Maldives”.

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Islamic finance has gained confidence in Maldives: Deputy Islamic Minister Dr Muneeza

Islamic finance has gained confidence in the Maldives with increased awareness among the public of its role in eliminating Riba (interest), according to Deputy Islamic Minister Dr Aishath Muneeza.

Writing in the Islamic Finance News website, Dr Muneeza stated that Islamic finance has been “spreading like wildfire” since the introduction of Islamic banking and capital market services in 2011.

“Demand for Islamic finance is evident and has proved that there is inherent demand for Islamic finance as the Maldives is a country with a 100% Muslim population. It is hoped that in the upcoming years the Maldives can be used as a global case study to prove the success of Islamic finance,” she wrote.

Under Islamic Shariah, any risk-free or guaranteed rate of return on a loan or investment is considered riba, which is prohibited in Islam.

In her article, Dr Muneeza explained that the first form of Islamic finance introduced in the country was Takaful in 2003, which involves mutual protection of assets and property and joint risk-sharing.

Conventional insurance is also prohibited in Islam because of forbidden elements such as Riba.

Following the wider introduction of Islamic finance in 2011, Dr Muneeza observed that it is now “considered as an integral part in the development of nation”.

The previous year meanwhile saw the introduction of “new innovative Islamic finance instruments” by both the government and private corporations, she noted.

In 2013, the government signed the first sovereign private Sukuk – an asset-backed bond which is structured in accordance with Shariah for trade in the market – deal in addition to the central bank issuing the first Islamic treasury bill.

Moreover, she added, four pieces of regulation governing Sukuk, Islamic securities, Shariah advisors, and the capital market Shariah advisory council were introduced last year.

The government-owned Housing Development Corporation also issued the first corporate Sukuk while the first Islamic hire-purchase product was unveiled by a private company, she noted.

In addition, the government formed the Maldives Hajj Corporation – of which Dr Muneeza is the chairwoman – as a pilgrimage fund and issued Halal certificates for fish products.

The Maldives Transport and Contracting Company (MTCC) hired a Sukuk advisor for real estate projects commencing this year, she added.

“Furthermore, regulatory consents have been given to the Islamic banking window of Bank of Maldives and the Takaful window of Allied Insurance Maldives to start their operations. Some products of these companies have been given consent by the Maldives Monetary Authority,” she wrote.

The government also planned to form “a national-level technical committee to monitor and supervise sovereign Islamic finance issues,” she revealed.

“Definitely, 2013 is a super duper hit year for the growth of Islamic finance industry,” Dr Muneeza suggested.

Developments expected in 2014 meanwhile included the inauguration of “Islamic windows” by the Bank of Maldives and Allied Insurance. The government anticipated that “a large number of customers will switch from conventional banking to Islamic banking when this takes place.”

Islamic fund management would also be introduced this year while the government had plans to “introduce an Islamic finance centre that will not only provide offshore Islamic financial services, but this centre will act as the Islamic finance hub for the whole South Asia region.”

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Pensions office performs U-turn on benefit increase

After initially reporting that the promised pension increase from MVR2300 to MVR5000 could not be done this month, the Maldives Pension Administration Office (MPAO) today confirmed that it is working to transfer the MVR5000 by tomorrow.

The CEO of the office had yesterday told Haveeru that it had not received the additional funds for the increase and that it would therefore transfer the current MVR2300, giving the rest when the government released additional funds.

“They are doing this to fulfill a government pledge. This has nothing to do with the pension fund. We will not increase it to MVR5000 by taking money from that fund. What we will do is transfer it when the government provide us with it,” Manik was quoted as saying.

The state funded pension for all citizen’s above the age of 65 was introduced in 2009 at MVR2,000, and was later increased to MVR2,300 through an amendment to pension legislation.

A further increase to MVR5000 – starting from March 2014 – was an election pledge of President Abdulla Yameen, though changes to the amount disbursed from the existing pension funds will require another amendment to the act.

Cabinet minister Ahmed Adeeb has recently assured that the increase would take place in March as promised, saying that it can be funded through a sustainable model based on long term bonds and T-bills.

Adeeb also talked about the prospect of combining various funds such as housing, health insurance, and pension funds into a single fund.

The government had already allocated MVR470 million (US$ 30.5 million) in the state budget for the MVR2,300 allowance (US$149). These funds will now be invested in the retirement pension fund or in financial instruments such as T-bills in order to generate the monthly MVR5000 stipend, Adeeb has said.

Following Manik’s comments yesterday, Adeeb told Haveeru that the delay was due to the first of the month falling on the weekend and “because it is a new allowance”.

Yesterday, MPAO CEO Manik stated that eighty percent of the pension funds are already being invested in T-bills sold by the government to finance the budget deficit, and that discussions with the government are underway to invest the rest of the funds in bonds.

While the government maintains this to be a sustainable model of financing the increase in pensions, critics have argued that, with a MVR1.3 billion (US$84.3 million) deficit budget, the move will plunge the country further into debt.

“These are loans, and taking loans is acceptable to invest in to increasing productivity. But this is not such an investment, this is something the government is spending. Eventually people will have to bear the burden of this,” former Economic Development Minister Mahmud Razee has remarked.

Last December, the central bank and regulator – the Maldives Monetary Authority – advised the state to pay all due treasury bills and treasury bonds and to turn existing short-term debts into long-term ones.

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Maldives National Oil Company seeks assistance with oil exploration

The Maldives National Oil Company (MNOC) has revealed that it will begin advertising the country as a destination for oil exploration as early as April, local media has reported.

MNOC Managing Director Ahmed Muneez told the press yesterday that the recent release of a seismic reports – initiated in 1991 by Royal Dutch Shell – had prompted the state-owned company to seek further foreign assistance.

“We have contacted a Norwegian company and a German company to help us better understand the findings of the study. Based on this report, we’re hopeful of advertising the Maldives as a new destination of oil exploration,” Haveeru quoted Muneez as saying.

He explained that an outside company would be hired to conduct a global advertising campaign in order to market the country as an oil source.

Prior to last year’s presidential elections, both the Jumhooree Party candidate Gasim Ibrahim and – eventual victor – Progressive Party of Maldives Abdulla Yameen promised oil exploration to supplement the country’s tourism industry.

The national oil company was formed in 2003 in order to assist the government’s attempts to diversify the economy, which still relies on tourism for 70-80 percent of GDP. The company’s activities include making preparations for the country’s third attempt at oil exploration.

“The fact that two leading oil exploration companies in the world had invested in exploration drilling in the Maldives, keeps up the glimmer of hope for commercial success of oil and gas exploration in the Maldives,” explains the MNOC.

“Today, with the remarkable improvement of technology in the area of oil and exploration such as three or four dimensional seismic survey systems etc., the Maldives National Oil Company is hopeful that oil or gas can be discovered in Maldives.”

Better known for its pristine beaches and clear waters – and more recently its vulnerability to climate change and commitment to carbon neutrality – the search for oil in the Maldives predates its famous tourism industry.

Information available on the MNOC website explains that the French oil company Elf Aquitaine embarked on exploratory projects in the Maldives as early as 1968. After experimental wells were drilled in 1976, it was discovered that the deposits at the site were not economically viable.

A second attempt at exploration came fifteen years later, with Shell conducting seismic surveys and drilling an exploration well in Ari atoll. Again, current market prices meant that the project was deemed financially unappealing.

Tourism Minister Ahmed Adeeb has previously told Minivan News that Maldives’ environmental image and commitments are no obstacles to developing of an oil industry.

The Maldives is “a big nation, and places not in marine protected zones or tourism areas could be explored for oil, like in the less developed north,” he explained.

The Maldives has previously been listed by the UN as one of the world’s most oil-addicted nations,  importing US$488 million in petroleum products in 2012 – equivalent to around one fifth of GDP.

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Orthopedic surgeries halted as IGMH fails to provide protective gowns

Read this article in Dhivehi

Indhira Gandhi Memorial Hospital (IGMH) has “temporarily delayed” some orthopedic surgeries after State Trading Organisation (STO) failed to supply lead gowns for medical staff, Deputy CEO Dr Mohamed Habeeb has said today.

He said the only surgeries affected by this would be those that require real-time X-ray monitoring, and that the hospital was expecting to receive the gowns very soon.

The lead gowns, like most other medical supplies for the hospital, are purchased through the STO, said Habeeb. The STO is a public company, with more than ninety two percent shares owned by the government.

“We have ordered replacements even last year. We might get them even by tonight. STO is working on it right now,” said Habeeb.

The purpose of lead gowns is to prevent the unnecessary and frequent exposure of medical staff to radiation which can cause cancer, infertility, and birth defects. While an estimated minimum of ten gowns are usually required for a surgery, the hospital currently has only two fit for use.

An IGMH nurse who often has to assist such surgeries told Minivan News that it has now been more than two years since they started requesting for new gowns. Letters have been written informing all relevant authorities of the situation, she added.

Orthopedic surgeries are done three days a week at the hospital, she explained, and on some days more than six of these surgeries require lead gowns.

“They [the remaining usable gowns] are usually taken by the doctors, saying they are closer to the source. Some staff have panicked after finding out they are pregnant. That risk is always there. And we are concerned about the patients as well. I have never seen any patient being offered a gown here,” she continued.

She stated that when patients need urgent attention, nurses cannot ignore and refuse to attend them even with the risks. Following a decision made by the department today, they will not be attending such surgeries until gowns are provided for them.

Head of the IGMH Orthopedic Department Dr Yoosuf Shan has told ‘Haveeru‘ that a memo highlighting the department’s decision has been sent to the heads of IGMH and the Health Minister.

“Radiation exposure could cause cancer. Most nurses assisting the surgeries are women. Without lead gowns their children could be born with birth defects. So as a precautionary measure we were forced to stop some of surgeries. They will continue only after we received lead gown,” Dr Shan was quoted as saying.

IGMH could not identify the exact reason for the delay in acquiring the gowns and the STO was unable to put Minivan News in touch with the relevant person.

Last November STO stopped supplying medicine to IGMH after it reached a set credit limit. At the time STO managing director Shahid Ali told local media that the Hospital had to pay approximately MVR 200 million to the organisation.

STO later resumed supples after raising the credit limit by MVR5 million in addition to the MVR411 million credit limit which includes payments going back to 2011.

Following the failure of other state owned company’s to pay almost US$40 million in bills owed to the STO, President Abdulla Yameen declared the organisation bankrupt last November. The company subsequently launched a campaign to cut operational costs by MVR50 million in 2014 (US$ 3,242,542).

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