Committee warns of bankruptcy risk at MMPRC amid financial struggles

The Maldives Marketing and Public Relations Corporation (MMPRC) is facing a deteriorating financial situation, raising concerns over its ability to continue operations without significant government support, according to a report by the State-Owned Enterprises (SOE) Committee of Parliament.

The committee’s findings indicate that MMPRC has not generated profit over the past four years. In 2019, the company posted a net profit of MVR 23.6 million. However, it ended last year with a loss of MVR 27.7 million, despite recording MVR 22.3 million in revenue — an 83 percent drop compared to 2023. The report stated that expenses in 2024 were higher than previous years despite the revenue shortfall.

MMPRC’s gearing ratios are also in negative territory. The report listed the company’s debt-to-equity ratio at -0.52 and its debt-to-total capital ratio at -1.11, highlighting its financial vulnerability.

The MMPRC currently operates with heavy dependence on the Ministry of Finance to meet its obligations, including programme implementation and loan repayment. The company has an outstanding loan of MVR 85 million from Maldives Ports Limited (MPL), of which MVR 78.6 million remains unpaid. The loan carries an interest rate of 4.6 percent and a 15-year repayment period. MMPRC has requested budgetary support from the finance ministry to meet its repayment obligations.

The SOE Committee's report also highlighted the MMPRC’s partnership campaign with English football club Liverpool, which has received MVR 20.6 million in budget allocation this year. An additional MVR 2.5 million was allocated for outdoor advertising under the same campaign. The report noted that the campaign has drawn public criticism, with questions raised about its effectiveness in promoting the Maldives as a tourism destination. Critics have pointed out the absence of visible Maldives branding on Liverpool’s platforms.

MMPRC is currently implementing 25 projects and programmes but has cited limited monthly disbursements as a barrier to execution. Delays in payments to international public relations firms have also hampered ongoing promotional work.

Despite these challenges, MMPRC has outlined several cost-cutting and revenue-raising measures. These include:

The committee report, which was expected to be presented during Wednesday's parliament sitting, was not tabled before the sitting concluded.