Maldives Integrated Tourism Development Corporation (MITDC)’s new managing director Mohamed Raid has said that the previous administration of President Abdulla Yameen had emptied all its finances.

Speaking to the press for the first time since his appointment in January, Raid said that the corporation’s finances were spent against regulations.

MITDC has so far begun two projects. They are the Baresdhoo Project and Kaashidhoo Tourist Village Project.

Baresdhoo Project

The Barasdhoo Project involves developing a resort with 3,000 beds and connecting Baresdhoo neighboring Mahakanfushi island with a causeway.

The project was initially handled by Maldives Marketing and Public Relations Corporation (MMPRC) as a land sale agreement and the state marketing firm had taken MVR 34 million from 19 investors for the project.

He said that the investors’ money was misused by using MVR two million of it to finance the senior management’s trips to fairs and transferring MVR one million to the Addu Integrated Tourism Project. Another MVR 3.9 million was used to fund an unknown project named Project Palm, he said, adding that Jausa company was given an advance of MVR 15 million for the project.

Kaashidhoo Tourist Village

This project was announced near last year’s presidential election and an unknown Chinese supplier was contracted without a bidding process. Details of the company and the financial transactions remain unknown.

A USD one million loan from the state budget was used to finance the project, but only metal structures for two buildings are seen at the site. Raid said that the USD one million was used up before the project was completed.

MITDC MVR 25 million in debt

Raid’s first move after becoming the managing director was to conduct an internal audit, which revealed that MITDC is MVR 25 million in debt.

He also said that the investors of the Baresdhoo project are suing MITDC for compensation and that the Anti-Corruption Commission (ACC) is investigating MITDC’s financial transactions.

Opening two projects for bidding

Raid said that while being MVR 25 million in debt is difficult for a small state-owned company, MITDC wishes to continue with the Baresdhoo and Kaashidhoo projects with instructions from the Attorney General and the Finance Ministry.

He said that MITDC will be opening these projects for bidding.