The Edition


MITDC spent 1.9 million on PPM office construction

Mariyam Malsa
25 July 2019, MVT 21:44
MTDC Managing Director at the parliaments SOE committee. PHOTO: PARLIAMENT SECRETARIAT
Mariyam Malsa
25 July 2019, MVT 21:44

Maldives Integrated Tourism Development Corporation (MITDC), on Wednesday, revealed that approximately MVR 1.9 million was spent on constructing an office for the Progressive Party of Maldives (PPM) during the previous administration.

Speaking at the Parliamentary Committee for State-Owned Enterprises, MITDC Managing Director Mohamed Raidh stated that the corporation had funded the PPM office under the guise of a CSR project.

He detailed that MITDC had spent MVR 1.8 million to build the former ruling party's office at a 4,000 square foot land plot after passing a board resolution.

As per the MITDC head, the fifth board resolution stated that the government would approve of the corporation if it funded the PPM office.

Raidh said that the MITDC records would indicate that total expenditure for the project amounted to MVR 1.9 million, despite a figure of MVR 1.8 being quoted on the resolution.

Further, the Managing Director revealed that the original resolution was disposed and that the copy presented to the committee was found in a hard disk.

Responding to Committee chair and Hulhudhoo MP Ilyas Labeeb's inquiry over whether the matter was submitted for investigation, Raidh stated that ACC was presently probing the case.

He also disclosed that MITDC had also established a case management system at the Attorney General's Office and provided gym equipment for the Department of Judicial Administration (DJA) as CSR projects. Despite denying knowledge of whether the aforementioned projects were completed or not, Raidh stated that company records would confirm MITDC's expenditure.

In order to fund the projects, Raidh stated that resorts which considered MITDC a friendly company withdrew money from the Ministry of Tourism as CSR investments and transferred the funds to the company.

"In my opinion, this is an act of money laundering", said the Managing Director.

Raidh stated that a total of USD 2.4 million was transferred to MITDC's accounts as CSR investments from several islands. He also stated that it was unknown whether the islands in question are currently operating as resorts or not.

Island names and amounts transferred

- Kuredhivaru, Noonu Atoll: USD 20,000

- Loafaru, Noonu Atoll: USD 1 million

- Ithaafushi, Kaafu Atoll: USD 100,000

- Dhigurah, Alif Dhaalu Atoll: USD 70,000

- Hurawalhi Beach Resort, Lhaviyani Atoll: USD 10,000

- Fasmendhoo, Raa Atoll: USD 10,000

- Maarandhoo, Haa Alif Atoll: USD 20,000

- Maagau, Dhaalu Atoll: USD 66,000

- Maafaru, Noonu Atoll: USD 10,000

- Miriandhoo, Baa Atoll: USD 10,000

- Maamutaa, Ghaafu Alif Atoll: USD 10,000

- Nasandhura Palace Hotel, Male': USD 20,000

- Embudu, Kaafu Atoll: USD 10,000

- Odegalla, Ghaafu Alif Atoll: USD 500,000