RDC fails to settle MVR 7.1m debt to Cartunes due to financial struggles

The Road Development Corporation (RDC) has revealed that the MVR 7.1 million owed to Cartunes International Private Limited, a private company, has not been settled due to the RDC's financial difficulties.

Cartunes had filed a case with the Civil Court to recover the MVR 7.1 million, which represents the value of goods and services provided by the company.

In addition to the principal amount, Cartunes sought one million Maldivian Rufiyaa as nominal damages for delayed payments and MVR 30,000 for legal expenses.

During the court proceedings, RDC acknowledged part of the claim and provided a defense for the contested portion.

For the acknowledged claim, RDC explained that the MVR 7.1 million owed to Cartunes had not been paid because of the corporation’s limited financial capacity.

Following RDC’s partial admission of the claim, Cartunes requested that the court order the payment of the outstanding amount within three months. RDC sought an extension, but Cartunes refused to grant the additional time.

The Civil Court offered RDC and Cartunes an opportunity to resolve the issue through negotiation, but according to the judgment, no resolution was reached.

As a result, the court ruled that RDC could not be granted the extension it requested. Civil Court Judge Fathullah Adam ordered RDC to pay the outstanding amount to Cartunes within three months, starting December 15.

Although RDC informed the court that it was unable to make payments due to its financial situation, a recent Public Sector Commission (PCB) report highlighted that RDC incurred the largest loss in the first quarter of 2025. The report revealed that RDC suffered a loss of MVR 113.73 million.

In addition to this, the report disclosed that RDC’s audits for the years 2022, 2023, and 2024 have yet to be completed.