PCB orders SOEs to cut costs, freeze hiring and promotions
PCB said the measures are intended to address economic pressures linked to the Middle East conflict.
The Privatisation and Corporatisation Board (PCB) has issued new directives requiring state-owned enterprises (SOEs) to reduce expenditure on salaries and benefits, and to halt staff promotions and new recruitment.
The directive follows reports that several SOEs created new positions and recruited staff ahead of the Local Council Elections held on April 4. Companies cited in relation to these activities include Maldives Transport and Contracting Company, Road Development Corporation, and Waste Management Corporation.
PCB said the measures are intended to address economic pressures linked to the Middle East conflict. Earlier guidelines issued on Monday did not include restrictions on salaries, benefits or promotions.
Under the latest directive, SOEs are required to reduce expenditure on staff salaries and allowances, organise work to be completed within official hours, and limit overtime payments to essential services.
The board has also instructed companies to suspend promotions and recruitment, including positions within approved structures, unless required for operational continuity. SOEs are required to manage salary-related expenditure to maintain cash flow.
The directive further states that companies must limit spending to essential activities required to meet legal and operational obligations. SOEs have also been asked to assess the economic impact of external developments and take appropriate action.
In addition, non-essential events and ceremonies are to be cancelled. For necessary events, companies are instructed to share resources and reduce costs.
These measures follow earlier instructions issued by PCB, which included limiting official travel, conducting meetings online where possible, suspending overseas training, and reducing expenditure on international travel.
The earlier guidelines also advised companies to avoid participation in international events unless there is a direct benefit, and to reduce electricity consumption, including through the use of renewable energy where feasible.
