Auditor General Urges Thoddoo Council-Owned Company to Boost Financial Independence

The Auditor General’s Office has called for stronger financial discipline at A.A. Thoddoo Local Authority Pvt Ltd, the first company established by a Maldivian island council. The 2023 compliance audit revealed that the company has operated for over a year largely dependent on the Thoddoo Council, which owns it outright. Incorporated on December 19, 2022, the company was intended to carry out economic activities to meet local needs under constitutional and legal provisions. Revenue efforts included charging fees for garbage collection, guest beaches, and selling construction materials. However, the audit highlighted several weaknesses, including the company not preparing its 2023 financial statements and incomplete transaction software as of October 13, 2023. From January to October 2023, the company received MVR 5.3 million, with more than MVR 2 million coming directly from the council. Monthly board salaries and allowances totaled MVR 180,000, leaving just MVR 154,786 in the bank by October. Employees went unpaid between September and mid-October due to lack of funds. The Auditor General recommended preparing auditable financial statements, restructuring operations to cover recurrent expenses from its own income, and reducing reliance on council funding. The findings underscore the challenges faced by council-owned enterprises in balancing local service delivery with sustainable business practices.