MIFCO CEO Shamah's Suspension Lifted

The Privatization and Corporatization Board (PCB) has lifted the suspension of MIFCO CEO Ahmed Shamah Rasheed.

After being sidelined from his position for 35 days, Shamah was informed in writing yesterday that his suspension had been lifted. The PCB also instructed Shamah to conduct all company affairs through the MIFCO board.

The PCB has also dissolved the temporary committee formed to run the company's operations during Shamah's suspension period.

Shamah was temporarily suspended from his duties without pay and allowances for a period of 14 days on March 18. That period expired on the 31st of that month. Therefore, the PCB board decided on that day to extend the suspension period with pay and allowances from the 1st to the 21st of this month. The PCB stated that the salary and allowances for the first 14 days of the suspension would be reinstated if the allegations against Shamah being investigated were not proven.

The PCB suspended Shamah to conduct an inquiry into issues submitted to the board and through the PCB's whistleblower portal, citing circumstances under Article 25 (b) (1) of the rules on the code of conduct, complaints, and disciplinary action for directors of state-owned enterprises.

The allegations made by the PCB against Shamah included the blatant use of company property and resources for personal and political purposes, unfairly removing permanent employees from their duties, workplace intimidation, demoting and reducing the salaries of permanent employees without a valid reason contrary to employment laws, and transferring them to other departments and company sites in other islands without cause.

Furthermore, it was noted that contrary to the policies and salary structures established for hiring company employees, jobs were given to the CEO's family members and friends before the budget was approved. Under the guise of headhunting, contrary to best practices and governance principles, employees were hired in violation of employee regulations, without regard to any qualifications, without public announcement, and without completing procedures. It was also noted that company positions were created and filled without obtaining PCB approval, and individuals without adequate education and experience were appointed as heads of departments contrary to regulations.

Shamah has denied all these allegations. The PCB conducted an inquiry to investigate the issues concerning Shamah. However, no details regarding the matter have been disclosed.