Audit Exposes MWSC’s Financial Troubles: MVR 200M ‘Profit’ Masked by Soaring Debts and Dubious Spending

Malé, Maldives – July 7, 2025 –
A damning audit report released on June 29, 2025, has exposed significant financial mismanagement and a troubling lack of oversight at Malé Water and Sewerage Company Pvt Ltd (MWSC), the state-owned utility responsible for water and sewerage services in the capital.

While MWSC declared a profit of MVR 200 million in its latest financial statements, the audit paints a vastly different picture. A closer look reveals that the same amount — MVR 200 million — was recorded as an increase in credit sales, or accounts receivable, suggesting that the company has not yet received the cash associated with the reported profit.

“Profit Without Payment?”
Experts are questioning the validity of MWSC’s financial claims, stating that a profit based entirely on unpaid customer bills does not reflect true profitability. The audit suggests the company is grappling with a mounting debt collection crisis that threatens its financial sustainability.

Bloated Assets and Dubious Projects
The report also highlights millions spent on inflated asset values and questionable projects with little to no strategic justification. Auditors flagged several cases where investments were made without proper due diligence or feasibility assessments, pointing to systemic failures in internal financial controls.

Lack of Direction
Perhaps most concerning is the audit’s conclusion that MWSC lacks any coherent path to reform. Despite ongoing financial strain, no clear roadmap or turnaround strategy has been identified. The company’s governance framework was described as weak, with insufficient checks on executive decision-making.

Public Accountability in Question
Given MWSC’s critical role in delivering essential services, the findings have sparked concern among policymakers, citizens, and watchdog groups alike. Calls for government intervention and independent review are growing louder, with many demanding a restructuring of the company’s leadership and operations.

As of now, MWSC has not issued an official statement responding to the audit’s findings, and the Ministry of Finance has remained silent.

Same issue was reported The Standard of Maldives.