To be clear, this is not a podcast. It's just a phone call and a recording app, no fancy microphones or studio equipment.
"Not a Podcast" aims to provide the public with an alternative viewpoint by having a direct discussion with someone who has a distinct perspective on a current issue.
** I apologise in advance for the poor quality of the raw audio. **
The state-owned fish company, MIFCO, is currently the talk of the town due to its decision to purchase a cannery in Hulhumale. However, this is not just any cannery; it is a factory that has been idle for almost two years. How much is the suggested price tag? A hefty USD 32 million.
So, is this a wise investment or another misstep?
To get his opinion, I gave Adhil Saleem, former MD of MIFCO, a call.
This is not a straightforward business deal in his opinion. Rather, he sees it as a calculated state attempt to monopolise the fishing sector, which he thinks will eventually eliminate private competition and is inherently unsustainable.
He sees the government as rescuing a private company rather than making an investment.
A House of Cards?
Adhil contends that we must first examine MIFCO's financial situation. The business is in serious trouble, to put it simply.
Technically, MIFCO is a bankrupt company that hasn't declared it, as he notes. The figures are self-evident:
A loss of MVR 166 million last year alone.
An accumulated loss totaling MVR 1.2 billion.
A staggering debt of nearly MVR 2 billion.
Adhil wonders how MIFCO could be able to purchase and run a second cannery in light of this fact. He contends that the business lacks the financial stability and operational know-how to handle such a significant additional load.
He thinks this investment will only make the company worse, not better.
Adhil talks about MIFCO's history during our talk and offers his opinions on what the company ought to be concentrating on instead.
Press play on the audio to hear his full take.
And also, here is my detailed report on this issue, published on Dhauru.
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