Parliament has endorsed a recommendation to dissolve the Maldives ailing national shipping line (MNSL).
The Finance Committee had originally recommended that MNSL be either privatised or dissolved.
In June, MNSL’s government-owned board also endorsed a proposal to discontinue operations and dissolve the company, allegedly to settle debts, reports Haveeru.
Sale of the company’s cargo ships was expected to settle MNSL’s US$8 million debts in three installments.
Parliament also approved Villufushi MP Riyaz Rasheed’s proposed amendment requiring the government to conduct feasibility studies before creating a new shipping line.
A proposal to dissolve the Maldives National Shipping Limited (MNSL) has been approved by the company’s board members as the group looks to settle any outstanding debts before ceasing operations.
Haveeru reported that the MNSL board had decided to discontinue its operations after settling the outstanding debts as part of a two stage shut down of the company.
Group Managing Director Ahmed Hameed said that the company would cease to exist under its current name once debts estimated to amount to US$8 million were settled through a sell-off of assets like cargo ships.
With the Maldives Star, MNSL’s only currently registered cargo ship on its way for India for a possible Rf2.1 million sale, Hameed claimed that the debts were expected to settled, according to the paper.
The Maldives National Shipping Limited (MNSL) has reduced its US$16 million debt to US$9 million, closing its Sri Lankan branch, downsizing its Singapore office and gave off leased containers.
“Our objective is to settle the [remaining] debts by next year,” Haveeru reports Chairman Mohamed ‘Senco’ Shareef, as saying. “After we took over the management of the company, we took several measures to reduce expenditure including reducing employees and administrative expenses.”
The company now expects to purchase a 5000 tonne cargo carrier following the sale of the 12,000 tonne “MV Maldive Enterprise” currently anchored at an African port because of a malfunctioning engine and costing the company US$2,000 daily.
“We are checking the prices. We expect to buy a 5000 tonne cargo carrier for about US$1.9 million. We hope that we would be able to settle the debts with the new cargo carrier and an existing one,” Haveeru reported Shareef as saying.
A ship owned by the Maldivian National Shipping Ltd, (MNSL) has been released by the port of Colombo in Sri Lanka after being impounded for three months.
According to Haveeru, the 8000 tonne ship was apprehended on 5 November 2009.
The ship had owed money to a Singaporean company and has now paid the total amount, Haveeru reports.
Another Maldivian ship was also trapped for 20 days in Malaysia during July 2009 over issues regarding payments for oil.