The government has decided to dissolve the 100 percent government-owned Maldives Entertainment Company Ltd (MECL) and made an announcement on Thursday seeking a liquidator.
The announcement invited interested parties to submit proposals before November 27.
According to the terms of reference for the liquidation, the government “decided to liquidate the company, given the level of engagement by the private sector in the development of the industry, and to allow their maximum engagement in the development of the industry.”
In June 2011, the Anti-Corruption Commission (ACC) discovered irregularities and discrepancies in the entertainment company’s finances.
“Even though records of expenditure were kept, the figures in the records and the actual amount withdrawn from the [corporation’s] bank account differs,” the ACC found.
“While company records show that MVR676,262.95 (US$43,800) was spent, the bank account showed that MVR807,703.95 (US$52,300) was withdrawn for expenses. Therefore, MVR134,470 was withdrawn from the bank without any record [of how the money was spent].”
Discrepancies in income statements meanwhile revealed that MVR524,121 (US$33,900) worth of income was not entered into QuickBooks (accounting software) records.
Moreover, as a result of the corporation’s spending exceeding its revenue, MECL had outstanding debts amounting to MVR122,178.98 (US$7,900), owed to various parties for purchases and services as of June 2011.
