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MITDC accounts frozen, board members under travel ban

Shahudha Mohamed
11 February 2020, MVT 20:00
Baresdhoo's development model proposed by Maldives Integrated Tourism Development Corporation (MITDC). The company's accounts were frozen and the board members were placed under a travel ban over failure to repay the investors for the project. PHOTO: NISHAN ALI/ MIHAARU
Shahudha Mohamed
11 February 2020, MVT 20:00

The state froze the accounts of Maldives Integrated Tourism Development Corporation (MITDC) and placed the company's board members under a travel ban over their failure to pay the amounts collected for the development project at Baresdhoo, Laamu Atoll.

Although MITDC collected a total of USD 3.5 million from various parties for the booking fee, delays in the Baresdhoo Integrated Tourism Project lead to many of the investors seeking repayment.

MITDC formerly confirmed this, adding that some of the investors were compensated.

However, local media Mihaaru reported that Civil Court, in January 2020, ordered to freeze MITDC's accounts and withhold the passports of the board members as the company was not making the payments according to the sentence.

Reports further state that there are three cases ongoing at court over MITDC's failure to make the payments. It is unclear which of these cases resulted in the order to freeze the company's accounts and issue the travel ban.

MITDC's board consists of five members: Chairman Abdulla Naseer Mohamed, Managing Director Mohamed Raid, Simana Ismail, Moosa Musthafa and Ali Nabeel.

The company formerly disclosed that some of the revenue collected for the Barasdhoo project were utilised for the then-ruling Progressive Party of Maldives (PPM). This matter is currently under investigation at the Anti Corruption Commission (ACC).

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