Parent company of VTV warns that it may have to suspend operations

Island Broadcasting Company, which runs the VTV media has warned that it may have to temporarily suspend its operations.

Other than VTV, the media company runs the Vnews.mv, Weekly magazine, and Miadhu daily. 

In a circular issued to the employees of the company, the company noted that the income of its parent company Villa Group which is heavily involved in the tourism sector has completely dried up.

The circular read that difficulties were posed in meeting the salary requirements of its employees and was in a situation where a temporary suspension of operations was faced.

The circular also stated that it could not operate even after reducing the wages of employees. It could only pay MVR 2,222 per employee as wages for the month of April and May.

Even if the operations were ceased, Ramadan allowance and wages equaling to the aforementioned amount would be paid to its employees, read the circular. 

“The reason for this decision is because the company did not wish to dismiss any employee during this situation and with the purpose of equally sharing any income obtained by the company.” Read the circular.

The decision against dismissing any employees would be reconsidered if the current economic situation in the country did not improve by the month of June. 

Many media companies in the country are facing the negative impact of the virus, in addition to the whole economy. Several companies are finding it difficult to pay the wages of its employees as income sources dry up and have even had to resort to reducing the wages.

This has led to the government introducing relief loans with light conditions and terms, specifically tailored for media companies.