RDC and MTCC Merger: Both MDs remain in the dark about the direction, stating "the exact details have not been directly discussed"

A leaked audio recording from a Road Development Corporation (RDC) management meeting has revealed that no party involved has a clear understanding of how the government’s decision to merge RDC with the Maldives Transport and Contracting Company (MTCC) will be implemented.

During the meeting, RDC Managing Director Ibrahim Nazeem stated that this change occurred without any prior knowledge or information being shared with the former Managing Director of MTCC. He further noted that it remains unclear how or for what specific reason this change was implemented.

In the audio, Nazeem stated that no prior consultations had been held among the relevant authorities regarding this change. He further noted that the implications of this decision remain unclear, leaving all parties uncertain about the future direction or the exact outcome of the situation.

He stated that since no discussions have been held with any party regarding the specific implementation of this change, the heads of both companies are currently unaware of the direction this process will take.

Furthermore, based on my conversation yesterday, even the Managing Director of MTCC has no clue how this change actually came about. We met yesterday after the announcement was made; he reached out to me and we met during a meeting at the party office. It is as if both of us are genuinely unaware of the actual direction this is heading, because the specifics of what is about to happen have not been discussed.

Ibrahim Nazeem

Despite President Dr. Mohamed Muizzu’s decision, Nazeem stated in the audio recording that the process will be managed through the Ministry of Finance. He noted that further details are currently unavailable as the Finance Minister is presently out of the country. Nazeem further indicated that completing this transition is estimated to take anywhere from three to six months, or potentially up to two years. He also mentioned the possibility of RDC being restructured as a subsidiary of MTCC.

Addressing concerns regarding employee job security, Nazeem stated that the President has provided assurances that no staff members will be left unemployed despite the ongoing corporate mergers. He further clarified that rumors suggesting only 600 out of the 3,500 employees at RDC would be transferred to MTCC are unfounded. However, he revealed that efforts to reduce the workforce by approximately 1,000 employees will continue as part of the Finance Ministry’s rightsizing policy, which aims to decrease the company’s monthly payroll from 47 million to 35 million Rufiyaa.

Furthermore, he noted that additional staff were recruited specifically to coincide with elections. Nazeem stated that these factors would be taken into consideration as the company undergoes right-sizing.

The audio recording reveals that the primary reason for the Road Development Corporation’s (RDC) current predicament is the massive debt inherited from the previous administration, which left both Fenaka and RDC in financial ruin. It further states that 80 percent of the company’s challenges stem directly from these financial constraints. Nazeem highlighted that although RDC has signed projects valued at approximately 10 to 11 billion Rufiyaa, the company is unlikely to recover given the sheer scale of its existing debt upon their completion. He further noted that the company is currently unable to secure loans, as its audit reports have not been properly finalized.

Despite these changes, the management has urged employees to continue their work as usual and remain calm, noting that the government has not issued any instructions to halt ongoing projects across the islands.

Throughout the audio recording, Nazeem's primary concern centered on the lack of clarity regarding the company’s future direction. He further noted that there is currently no certainty on how employees will be treated moving forward.