State companies told to stop USD salary payments

State-run businesses and state-owned enterprises have been instructed to take more austerity measures, including stopping the payment of salaries in US dollars.

In a circular on Tuesday, the Privatization and Corporatization Board (PCB) that a number of measures have been rolled out at President Dr. Mohamed Muizzu’s initiation to overcome the economic and financial challenges facing the county and manage the government’s cashflow.

The PCB said it finds it important to support the efforts and minimize the expenses of state companies.

The board announced a string of new measures that government-run businesses, state-owned enterprises and its subsidiaries must take. This includes:

• Freeze all new hires, even to posts in the approved administrative structure, expect what is absolutely necessary for the company’s operations
• No changes to the salary and allowances of employees unless approved by the PCB
• No overtime unless to do work that is absolutely necessary
• Suspension of payment of salaries in US dollars
• Use employees to hold trainings and resources available from the Maldives
• Stop outsourcing work unless absolutely necessary
• Utilize surplus employees in departments or employees with more idle time for ongoing projects or projects that companies absolutely need to start

The PCB also instructed state companies to limit official trips to those absolutely necessary, minimize overseas trips and hold virtual meetings with international customers or suppliers, use public transport where available and minimize travel costs as much as possible.

The board also instructed state companies to save energy, reduce spending on paper and stationary, digitalize communications, share resources among companies to hold events, and reduce event refreshment expenses as much as possible.

Companies were also instructed to adhere to the procurement plan and the budget when making procurements, limit the purchase of consumables to a need-basis, and reduce spending on CSR and sponsorship. The board also instructed the companies not to engage in any unnecessary spending, even on things allocated in the budget.