The Parliament's State Owned Enterprises (SOE) Committee has decided to investigate the issue of the suspension of MIFCO CEO Ahmed Shamah Rasheed.
During today's SOE Committee meeting, Dhaandhoo constituency MP Yaugoob Abdulla proposed summoning Shamah as well as members of the Privatization and Corporatization Board (PCB) to the committee for questioning. With the support of Maafannu Medhu constituency MP Ibrahim Rasheed for this proposal, the committee decided to agenda the matter and proceed with it at the earliest upcoming session.
Shamah was suspended last Monday, reportedly to conduct a full inquiry into corporate governance-related issues submitted to the PCB. The PCB stated at the time that he was suspended in accordance with the circumstances outlined in Article 25(b)(1) of the rules regarding the code of conduct, submission of complaints, and taking action against directors of state-owned enterprises.
Shamah was suspended for a period of 14 days suddenly and without prior notice. Shortly after the suspension, the PCB entered MIFCO that day. They also entered the PCB bureau that day. However, Shamah was not questioned regarding any of the allegations made against him by the PCB.
In a letter sent to Shamah by the PCB on February 29, it was noted that MIFCO had committed 12 acts in violation of the Corporate Governance Code and PCB regulations, and he was instructed to rectify them.
Among the issues highlighted by the PCB were the blatant use of company property and resources for personal and political purposes, unfairly removing permanent employees from their job responsibilities, workplace intimidation, demoting and reducing the salaries of permanent staff without any reason in violation of employment laws, and transferring employees to other departments and company sites in the islands without cause.
Furthermore, the PCB noted hiring family members and friends of the CEO in violation of the company's recruitment policies and salary structure before budgets were approved, hiring employees under the guise of headhunting contrary to best practices and governance rules without regard to qualifications, without public announcements, and without completing procedures, creating company positions and hiring people without PCB approval, and appointing individuals without adequate education and experience as heads of departments in violation of regulations.
While the PCB has made major allegations against Shamah and suddenly suspended him, neither MIFCO nor Shamah has officially commented on the matter.
