It has been revealed that the state owes over USD three million to the investors in the Baresdhoo project.

The Anti-Corruption Commission (ACC) is investigating graft allegations against the Maldives Integrated Tourism Development Corporation (MITDC), alleging that it- along with the Maldives Marketing and Public Relations Corporation (MMPRC)- had taken advance payments from investors for the halted project. While the management is accused of spending the payments, ACC has asked to be provided details of each investor.

According to documents obtained by RaajjeMV, over USD 3.5 million (MVR 54 million) was taken from a total of 38 investors through MITDC and MMPRC.

While the project has been halted since being officially launched in 2016, some of the investors have requested a refund. While the document shows that the previous government had refunded some of them, which was a total of USD 500,000.

Former President Abdulla Yameen’s government had planned to develop Baresdhoo for tourism with 50 guesthouses featuring 25-50 beds, and two hotels with 100 beds, along with the restaurants and cafes, a bar, spa, theme park, theatre, golf course, botanical garden and dive centre. It was to be completed within 18 months.

As noted earlier, the project was officially launched in 2018. However, no work has been conducted.

It was first handled through MMPRC, who is to have leased 20 plots to 19 investors, for a total of MVR 34 million. MVR four million was refunded.

While the project was transferred to MITDC in 2018, it has been revealed that the company was already taking investments prior to that. In the transfer, MMPRC handed MVR 14 million out of the MVR 30 million taken in investments to MITDC, claiming that MVR 15 million had been spent to develop the Baresdhoo harbor, which was not completed.

MITDC proceeded to lease 20 plots of land to 19 investors, for a total of MVR 21 million.

It has since been revealed that the project was handed to MITDC without an agreement, and that MMPRC had not provided receipts of expenditure. However, receipts of the funds handed over to MITDC was available, and was signed by MITDC’s former managing director Mohamed Shahid.

The funds invested for the Baresdhoo project is gone, with MITDC using it for unrelated projects. This includes MVR two million for “senior management fairs,” as well as MVR one million for the Addu Integrated Tourism Project. In addition, MVR 3.9 million was spent for other unrelated guesthouse projects, while MVR two million was used through MITDC for the development of the head office of former ruling Progressive Party of Maldives (PPM).