State-owned companies facing serious financial challenges have sponsored the state media operator Public Service Media (PSM) corporation's coverage of the "Euro 2004" football tournament due to begin on Friday.
PSM named high prices to sell the coverage's title sponsor, main sponsor and co-sponsor packages, reliable sources informed Adhadhu regarding the Euro 2004 tournament coverage. All of the packages were bought by state-owned companies.
The title sponsor is the state wholesaler State Trading Organisation (STO). The main sponsors are the State Electricity Company (STELCO) and port operator Maldives Ports Limited (MPL). The co-sponsors are the infrastructure and transport service provider Maldives Transport and Contracting Company (MTCC), the Male' Water and Sewerage Company (MWSC) and the Housing Development Corporation (HDC).
When the sale of sponsorship packages to these companies are added up, PSM will earn MVR 4.9 million.
PSM's sponsorship package prices and buyers
- Title sponsor, STO - MVR 1,233,600
- Main sponsor, STELCO - MVR 925,200
- Main sponsor, MPL - MVR 925,200
- Co-sponsor, MTCC - MVR 616,800
- Co-sponsor, MWSC - MVR 616,800
- Co-sponsor, HDC - MVR 616,800
- Total - MVR 4,934,400
PSM is covering the tournament with only government companies as sponsors after failing to attract enough sponsors. PSM needed two more main sponsors and two more co-sponsors. The company would have earned an income of more than MVR 8 million if these packages had been sold.
Notably, with the exception of MPL, all the other companies that sponsored the Euros depend on funding, loans and subsidies from the government to manage operating costs and repay debt.
Considering individual companies, HDC is the company with the highest expenditure by the state. According to a recent budget position report released by the Auditor General's office, HDC is the company that incurred the highest debt in the five years between 2018 to 2022 with capital contributions, treasury loans and on-lent loans.
Of the sponsor companies, STELCO has the second worst finances. As it is forced to sell electricity at a loss, the company is operated with government funds, subsidies, various kinds of loan financing and other concessions.
The tournament coverage provider PSM is also a company that is a heavy burden on state finances. While funding has to be provided to PSM above budgeted amounts every year, the companies owe large sums of money to private and government companies due to mismanagement.
