An audit report of the Tourism Trust Fund has revealed that resort businesses owe MVR 56.8 million to the fund as Corporate Social Responsibility (CSR) contributions, mandated during the leasing of land for tourism purposes and the extension of construction periods.
According to the audit report released by the Auditor General’s Office, the fund held MVR 149.2 million as of the end of last year. When including the outstanding receivables, the total value of the fund exceeds MVR 200 million.
However, the audit noted a lack of clarity regarding the accounting of these receivables and their origins. It remains unclear whether the outstanding amounts pertain to construction period extensions or initial lease agreements. Furthermore, the report does not specify whether these payments are being made under an agreed installment plan or if they are overdue balances that have bypassed their deadlines.
Under tourism regulations, CSR payments required for construction period extensions must be settled over a three-year period starting from the date the resort commences operations. In cases where CSR payments are pledged during the initial leasing of a property, the amount must be paid in installments over two years from the date resort development begins.
Regarding expenditures, the fund’s activities during the audit period—from September last year to the end of the year—were limited to a single project. The fund spent MVR 8.5 million on the renovation of fountains at Sultan Park and Republic Square.
While the objectives of the Tourism Trust Fund include the development of the tourism industry and the training of Maldivians for the sector, the report indicates that no funds have been utilized for these purposes to date.
The Tourism Ministry manages the Tourism Trust Fund in accordance with decisions made by a seven-member Trust Fund Committee, which includes representatives from the President’s Office, ministries, and the Maldives Inland Revenue Authority (MIRA). The committee is mandated to manage the fund in strict adherence to its official Trust Statement.
