The parliament has approved the dissolution of the Maldives Integrated Tourism Development Corporation (MITDC) and ordered the Maldives Marketing and Public Relations Corporation (MMPRC) to cut costs.
The State Owned Enterprises (SOE) Committee sent its report on the situation of the two companies to the parliament floor on Wednesday. The report was passed by a majority of 62 votes.
The report calls for three main actions. The MMPRC has been asked to study ways to increase revenue and reduce expenditure.
The government had earlier decided to liquidate MITDC. The parliament approved the decision.
The parliament also asked the Finance Ministry to send a special report to the SOE committee on the implementation of this decision.
MMPRC's financial statements show that the company is in danger of bankruptcy. The parliament report also said that the company is not self-sufficient and must rely on the government to pay its debts.
MITDC was established in 2016 to promote medium-scale tourism in the Maldives. The company has posted a loss of MVR 164 million without making any profit.
MITDC started three projects, none of which have been completed. The company has spent MVR 52.3 million on the projects.
The government has decided to hand over MITDC's projects and works to the Maldives Fund Management Corporation Limited (MFMC).
