Zuhair said that the company's debt increased significantly due to leasing vehicles for various projects at above-market rates from private companies.
Road Development Corporation (RDC) was in debt of MVR 837 million during the previous administration due to substantial wasteful expenditures, the company's Managing Director Ali Zuhair said today.
Speaking at the parliament's Committee on State-Owned Enterprises (SOE), Zuhair said that many documents were not maintained when the current government took over the company. According to the available records, RDC had debts totaling MVR 837 million.
He stated that MVR 152 million has been paid to various parties with the government's assistance.
“Now the debt has been reduced to MVR 585 million,” Zuhair said.
Zuhair said that the company's debt increased due to leasing vehicles for various projects at above-market rates from private companies. Additionally, RDC rented more vehicles than necessary, which resulted in significant rise in expenses.
"There is about MVR 15 million to be paid in rent each month. We have now returned some vehicles and adjusted the prices to market rates. We have also reduced that amount [rent] to MVR 5-6 million," Zuhair said.
Zuhair also noted that RDC had purchased vehicles at higher prices than market rates under the previous management. He said that current projects are being executed with equipment purchased at 35 percent lower prices than before.
"About MVR 19 million has been reduced so far. More can be reduced in the future," Zuhair said.
“If this is maintained, we will save MVR 234 million by the end of 2024,” he added.
Zuhair shared with the committee some alleged corruption cases committed by the former management of RDC. He mentioned a case involving MVR 161 million transferred through internet banking without any supporting documents and MVR 90 million deposited in the company's CFO account.
However, he did not disclose the identities of the individuals and companies involved as the cases are currently being investigated by the police and the Anti-Corruption Commission (ACC).
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