The Audit Report of Ministry of Tourism has showed the ministry was negligent of over USD 7.79 million received in donations from investors for Corporate Social Responsibility (CSR) projects.
According to the audit report for the year 2017 and 2018, investors donated over USD 7.79 million to be donated for public companies and corporative societies. The report further indicated companies and corporative societies attested to receiving USD 6.17 million in donations from the total USD 7.79 million received by the ministry.
The report also indicated the ministry took more than USD 15,000 as CSR funds for every month extended as stated in the Construction Period Extension Policy when extending property development durations for tourist resorts, tourist hotels, training resort, transit hotels and city hotels. While USD 15,000 was taken as CSR funds for economic and social development of the communities, the ministry has no written policy on the CSR amounts to be collected from investors, and the amounts collected from investors varied. Although the tourism ministry has a set policy on how CSR funds received from tourist projects can be invested, the policy has not been gazetted.
According to the report, although the ministry was required to pay USD 3.4 million to the welfare company of Maldives National Defence Force (MNDF), the company attests to receiving only USD 3.1 million. The report stated the company did not receive the balance total of USD 291,828.
The audit report also noted account statement issues regarding Maldives Integrated Tourism Development Corporation Private Limited (MITDC). According to the report, although the ministry asked various investors to pay a total of USD 2.3 million, documents show the ministry only received USD 2.04 million.
Additionally, although State Electric Company Limited (STELCO) received USD 608,935 as CSR funds, only USD 363,559 was spent on CSR projects. Meanwhile, Maldives Transport and Contracting Company Limited (MTCC) received only USD 41,000 from the USD 900,000 the ministry asked investors to pay to the company.
Moreover, Public Service Media (PSM) received USD 20,000 less from the USD 441,260 the ministry asked investors to pay to the corporation. Although the ministry asked investors to pay USD 20,417 to State Trading Organisation (STO), records do not show any payments from investors to the company as CSR funds.
Considering the transactions, Auditor General's Office recommended the tourism ministry to deposit all CSR funds it received without proper transaction details to the Public Bank Account at Maldives Monetary Authority (MMA).