Audit reveals WAMCO’s 2022 losses unfurled to MVR 127.88m, with total losses past MVR 480m

The state-owned waste management company WAMCO posted a loss of MVR 127.88 million at the end of 2022, according to the financial audit report released by the Audit Office. 

The report shows that WAMCO generated MVR 215.43 million in revenue for the year, a 23.1 percent increase from the MVR 174.98 million earned in 2021.

However, WAMCO’s administrative expenses alone reached MVR 281.62 million in 2022. The largest expenditure was employee salaries, with MVR 217.57 million spent on wages. Total staff-related expenses amounted to MVR 234.67 million, according to the audit.

The government injected MVR 105.20 million into WAMCO during the year. Even so, the company’s accumulated losses climbed to MVR 486.23 million by the end of 2022. In comparison, WAMCO’s total loss at the end of 2021 stood at MVR 358.11 million. The audit further notes that WAMCO operated at a loss of MVR 123.84 million during 2022, with its post-tax loss recorded at MVR 127.88 million.

The state continues to spend heavily on government-owned companies, many of which operate at a loss. A report released by the Privatization and Corporatization Board (PCB) last year showed that 12 state-owned companies posted a combined loss of MVR 280 million in the first quarter alone. Foreign agencies have repeatedly urged reforms to reduce the dependence of state-owned enterprises on government funding. Although the government pledged to undertake such reforms, it was later accused of hiring large numbers of employees during key election periods.