Government owned companies to require chartered accountants

Minister of Finance Moosa Zameer has announced plans to amend regulations, mandating that all government-owned companies appoint a chartered accountant. This initiative aims to enhance the financial management of these entities, as highlighted by the minister during a press conference addressing public expenditure management issues. Minister Zameer emphasized the government’s commitment to reforming state-owned enterprises (SOEs), noting that audits for companies like Fenaka Corporation revealed a lack of proper financial statements prepared by accountants. He acknowledged previous efforts by former finance ministers to address these shortcomings and confirmed discussions with the President to implement this requirement. The Finance Minister stated, “The government will determine the accounts of each SOE through a chartered accountant in Maldives, necessitating each SOE to hire an accountant and establish an auditing system.” He underscored the need for a robust legal framework to manage state assets within these companies, ensuring accountability for those responsible. Noting that there is a specialized section within the ministry and a separate legal institution, Minister Zameer highlighted that this leads to legal conflicts. Meanwhile, Attorney General Ahmed Usham highlighted ongoing legal ambiguities regarding representation for state-owned companies, noting the absence of a sufficient system to investigate recent corruption cases within these entities. He suggested that a dedicated regulatory body for government companies may enhance oversight, indicating that previous management under the finance ministry had been more effective. He added that any necessary legal amendments are under consideration to resolve these issues.