Parliament has advised the Maldives Marketing and PR Corporation (MMPRC) to find more avenues to boost revenue and implement stricter austerity measures in the face of bankruptcy for the State-owned firm.
Operating as an independent and autonomous body under the governance of a Board of Directors appointed by the President of the Maldives, MMPRC actively markets the Maldives in key global markets.
The Parliamentary State-Owned Enterprises (SOE) committee had appraised the recent financial position of MMPRC along with Maldives Integrated Tourism Development Corporation (MITDC) as part of its wider efforts to review state-owned tourism related companies.
The committee's report examined the company's financial position in detail, highlighted measures taken to improve the company's finances and recommendations of further steps.
The report, backed by 62 lawmakers during the Parliament sitting on Wednesday, had made three major recommendations to improve the financial position of both companies.
The SOE committee report expressed concern over MMPRC’s continued dependence on State funds - recommending measures to ensure swift financial independence.
MMPRC's gearing ratios, including debt to equity ratio and debt to total capital ratio being in minus figures, indicate a risk of bankruptcy, the report said.
The committee in its report had noted the steps being taken by MMPRC since 2023 to reverse its fortunes.
The report had highlighted that MMPRC has increased membership fees this year and increased revenue by 20 percent from advertising sales. The hike in road show and fair participation fees is expected to increase total revenue by 49 percent this year, the report said. In addition, costs have been reduced by five percent by securing smaller stall spaces at tourism fairs.
In winding up MITDC, the committee had directed the Ministry of Finance and Planning to recover the dues of the company in accordance with the Companies Act, pay off its debts and fulfill other obligations prescribed by law. After completion of this process, the government will proceed with the liquidation of MITDC and the Ministry will directly supervise the execution of the duties of the designated liquidator, the report said.
The report also mandates the Ministry to send a report on the completion of the liquidation of MITDC to the SOE Committee.