The government’s plan to dissolve the Maldives Integrated Tourism Development Corporation (MITDC) has been delayed due to unresolved legal issues linked to the L. Baresdhoo project, according to the Finance Ministry.
In a letter sent to Parliament’s State-Owned Enterprises (SOE) Committee, the Finance Ministry outlined key concerns that must be addressed before MITDC can be dissolved. These include resolving legal matters related to the Baresdhoo project and determining the future management of the development. The ministry also stated that efforts are being made to minimise the impact on employees during the transition.
The Finance Ministry’s letter highlighted that MITDC has not been operating in a manner that meets its intended objectives. The decision to dissolve the company aligns with the government’s strategy to reduce expenditure.
The Baresdhoo project was initially planned as an integrated tourism village featuring guesthouses, hotels, restaurants, and other tourism facilities. The project contract was awarded to Jausa Construction on 24 April 2017 for $22.8 million. MITDC paid an advance of $975,000 (MVR 15 million) to Jausa Construction, but no work was carried out, and the funds were not returned. Additionally, MITDC has yet to recover MVR 36.1 million in outstanding payments from land leaseholders involved in the project.
The Cabinet had decided on 1 September to dissolve MITDC as part of a corporate restructuring effort designed to cut government spending, with plans to finalise the process by the end of December. Since its establishment in 2016, MITDC has received MVR 64.4 million from the state budget and has recorded losses amounting to MVR 164.2 million.
Following discussions on the Finance Ministry’s letter, the SOE Committee opted to continue monitoring the matter until the dissolution process is complete. The committee also requested the Finance Ministry to provide detailed updates on the progress.
