Bill seeks to mandate financial disclosure by SOE heads

Galolhu North MP Mohamed Ibrahim of the opposition MDP has proposed an amendment to the law to require heads of state-owned enterprises (SOEs) to submit and disclose their financial statements.

The amendment to the Privatisation, Corporatisation, and Monitoring and Evaluation of State Enterprises Act was submitted to parliament on Tuesday.

MP Mohamed Ibrahim said the purpose of the proposed amendment is to strengthen financial accountability and transparency within state-owned companies.

While current laws require SOEs to audit and disclose their annual financial statements and progress reports, there is no legal requirement for their senior officials or board members to declare their personal financial information.

The bill notes that, as many major infrastructure and basic service projects are implemented through SOEs, there must be a strong accountability framework similar to that applied to public office holders.

Under the proposed amendment, senior officials required to file financial statements include:

These individuals would be required to submit their financial statements to the Privatisation and Corporatisation Board (PCB), which oversees state-owned enterprises. The PCB would also be required to make the statements publicly available.

According to the bill:

The amendment would take effect from the date of its passage by parliament.

This marks the third bill proposed by MP Mohamed Ibrahim on Tuesday, alongside his amendments to the Audit Act and the Constitution, both of which seek to require financial disclosures from individuals holding independent and ministerial positions.