Hajj Corporation Managing Director Mohamed Shakeel has said that the corporation has been run at an yearly loss of MVR 40 million, asserting that with new initiatives to increase revenue, he expects the corporation to become profitable.
Hajj Corporation Managing Director Mohamed Shakeel has said that the corporation has been run at an yearly loss of MVR 40 million, asserting that with new initiatives to increase revenue, he expects the corporation to become profitable.
Speaking in a program on State TV, Shakeel said that the corporation has been run at loss for the past eleven years. He added that this government is currently making efforts to improve the situation.
According to Shakeel, the corporation had previously been managed against the very principles for which it had been formed. He defined the corporations role as ensuring citizens can fulfill hajj pilgrimage at reasonable costs, and to find ways to increase revenue through the payments made by pilgrims which will result in further lowering costs for future pilgrims.
In contrast to this, the corporation had so far acted as an agent that organizes hajj and umrah trips, he said, which has led to amassing huge debts.
The company has been operating at a loss of MVR 30 to 40 million each year, he said.
Shakeel revealed that the current price quoted for a pilgrimage had been set years ago. However, by now, the government of Saudi Arabia is charging more taxes, airline ticket prices have increased, and accommodation charges, too, have spiked, he said.
"But even when I took leadership, I did not see any of these factors having been considered," Shakeel said.
He said that despite the corporation having so far been run largely dependent on the State, current efforts are designed to change such practices.
He said that on his appointment, President Dr Mohamed Muizzu had also appealed to him to build the corporation into a profitable, financially stable entity.
Shakeel's view is that the corporation has to become better managed in order to provide hajj services at its best. This is the reason why the corporation is working on entering real estate business now, he said.
The corporation has recently announced that it will be developing a housing project in Hulhumale', with the design work now assigned to Fahi Dhiriulhun Corporation.
Hajj Corporation purchased two plots of land from Hulhumale' in May. One of these is being used for the housing project, with the other to be dedicated to a nine floor office complex.
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