Former President Abdullah Yameen has questioned the profitability of State Trading Organization (STO), asking why a company that claims MVR 12 billion (US$ 777.5 million) is resorting to a loan to purchase staple food items.
Speaking in a rally held in opposition Progressive Congress Coalition, President Yameen denied STO’s profitability claim. This, he said, was more evidence that the Government once again was resorting to falsehoods.
“Twelve billion could possibly be the turnover, what the company earned [in the financial year]. If 12 million was profit, then why would the company need to go to Egypt and take a loan to purchase staple food?” he asked.
Last Wednesday, STO had signed a US$ 175 million (MVR 2.6 billion) trade financing facility with International Islamic Trade Financing Corporation (ITFC). Under this facility, STO would purchase fuel, food items, medication, and other medical equipment.
Another Islamic financing based organization, Islamic Development Bank (IsDB) had granted MVR 1.1 billion (US$ 71.3 million) last year under a trade financing facility.