The Maldives Industrial Fisheries Company (MIFCO) has decided to take special measures to strengthen its corporate governance by cutting the salaries of executives and dismissing underperforming employees, the state-owned enterprise’s (SOE’s) board of directors informed employees in a memo on Thursday.

MIFCO media officer Ibrahim Saeed, speaking with local media, said that the company is making positive changes to strengthen its management, identify problems and reduce waste. The employees have been informed of the board’s decision, he said.

“[There is] no deduction from the salary of any ordinary employee. The general manager and senior management level are doing it. Even if there is a complaint, it will be at that level. There will be no fraud in this regard,” he said.

In a memo signed by MIFCO’s Chief Financial Officer (CFO) Ilyas Haneef, the company informed its employees that the board of directors, on Wednesday, had decided to take certain measures, as part of an efficiency exercise to strengthen company operations.

The decision by the MIFCO Board of Directors outlined;

  • 20 percent reduction in the basic salary of senior and middle management, including employees in the ranks of CEOs and senior managers
  • Structural reforms to reduce gaps in the salary structure of employees
  • Dismissal of underperforming employees
  • Removal of non-essential employees on probation
  • Contract employees, on reaching the age of 65, to be given three months notice of dismissal
  • Additional contract employees should not be hired except in extenuating circumstances
  • Discontinue payment of Deputy Head Allowance, Engineering Allowance, Production Allowance, Risk Allowance and Non-Practice Allowance
  • Cease paying ferry allowances except for the Villimalé Ferry Allowance
  • Contract employees, unless critical to the company, will be let go after June
  • No overtime unless considered critical
  • Offer of a three-month package for those who wish to resign their position

Fishers recently protested against the deteriorating financial situation at MIFCO and were paid their outstanding fees as a result. However, this led to MIFCO later reducing the purchase price of fish — the company has always been losing money on fish purchases at above market prices.