President Dr. Mohamed Muizzu has said that the number of employees at state-owned companies will be brought down to the level the companies actually need by the end of this year, as part of efforts to strengthen how the companies are run.

The President said he had kept his pledge not to dismiss employees from companies during his first two years in office. However, he noted that some companies had been staffed with many times more people than they required for political purposes, and that many of these employees were receiving salaries without doing any work, making this step necessary to fix the companies. Citing FENAKA as an example, the President said a very large number of people had been placed there, many of whom stay at home, and that the company’s problems are also evident from the Auditor General’s report.

The President said dismissals will be based on attendance, workplace conduct and performance, and that those let go will be given redundancy packages and access to soft loans to help them start their own businesses.

According to information shared by the PCB President with a parliamentary committee, more than 18,000 people were hired into state-owned companies during the previous administration. Along with concerns that some companies lack employee records and hiring documentation, the financial condition of these companies has also deteriorated.