The audit report revealed major financial issues within MITDC's operations.
Maldives Integrated Tourism Development Corporation (MITDC) has started three projects at a cost of MVR 52.35 million in recent years, but none of them have been completed, Auditor General's Office said.
According to MITDC's special audit report, the company was established in 2016 during the administration of former President Abdulla Yameen to further develop and promote mid-range tourism in Maldives. By the end of President Ibrahim Mohamed Solih's administration, a total of three projects were started, the report said.
The report details that a total of MVR 52.35 million was spent on the Laamu atoll Baresdhoo Integrated Resort Island Development Project, the Kaafu atoll Kaashidhoo Tourist Village Project, and the 'Project Palm' which aimed to develop ten lagoons in Kaafu atoll.
“However, no projects have been completed,” the audit report said.
- Baresdhoo Project - MVR 22.02 million
- K. Kaashidhoo Project - MVR 26.72 million
- K. Atoll Lagoon Development Project - MVR. 3.61 million
The report said while the Baresdhoo project is no longer active, the USD 975,000 advance payment made to the contractor has not been refunded. The advance payment was also issued to the contractor without obtaining an advance payment guarantee, the report said.
Although 52 percent of the USD 1,656,346 allocated for Phase 1 of the Kaashidhoo Tourist Village Project has been spent, only one of the three 54-bed guest hotels, one waste management building and one maintenance building has been carried out, despite more buildings being in the original plan.
“It was also found that all three buildings were not completed,” the report said.
In the Kaafu atoll lagoon development project, a Singaporean company was awarded to develop the EIA and master plan of three lagoons in the atoll. Despite paying MVR 3.6 million for this, the project was later stopped because it was deemed unfeasible to pay the acquisition fee needed for the lagoons, the report said.
According to the report, 35 private individuals had invested a total of MVR 55.3 million in the Baresdhoo project. However, MVR 36 million has not been returned to 22 individuals after the project was stopped, the report also detailed.
According to the report, the company does not have the ability to repay the funds unless it receives financial assistance from the government.
As such, the Audit Office has asked MITDC not to re-start the projects until the necessary funds are available.
The audit office also recommended that the company should not continue to operate unless it finds additional sources of income as it has not been generating adequate revenue since its inception and the projects it has started are not expected to be completed in the near future.
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