The Maldives Tourism Development Corporation (MTDC) is reportedly preparing for a second round of share issuance aimed at increasing the government's stake in the company.
Reliable sources informed Adhadhu that MTDC is pursuing this move to restructure its share composition, effectively granting the government majority ownership.
MTDC is currently the only state-founded public company where the general public holds a majority stake. Public shareholders own 53 percent of the company, while the remaining 47 percent is held by the government.
According to a source familiar with the matter, the move is driven by the government’s difficulty in passing certain decisions at MTDC under the current ownership structure.
The MTDC board consists of nine members, five of whom represent public shareholders. Government-backed proposals can only be passed with the consensus of the other board members.
The push to alter the shareholding structure comes amid ongoing efforts to transfer the head lease of Gaaf Dhaal Magudhuvaa, a resort island currently leased to MTDC.
Rumors circulated last month that the government intends to facilitate the transfer of the Magudhuvaa head lease at an undervalued price to Ahmet Aydeniz, the Turkish company currently operating "Ayada Maldives" on the island.
Reliable sources told Adhadhu that MTDC’s former Managing Director, Ahmed Niyaz, was dismissed from his post after refusing to execute the transaction to transfer the Magudhuvaa head lease to the Aydeniz company.
Following the appointment of Haris Mohamed as the new Managing Director, MTDC issued a statement denying any plans to sell Magudhuvaa.
However, credible sources claim that the transaction was brought before the Board of Directors even after Haris took office.
"It failed because the government lacks a majority on the board. That is why they are now trying to dilute the shares and seize control," a source said.
"If this island is sold off, it would be a massive loss for the public and the shareholders. It is an act of corruption."
The current sublease agreement between MTDC and the Turkish company is set to expire in 2031, coinciding with the expiration of MTDC’s own head lease for the island. The Turkish firm is reportedly seeking to have the head lease transferred directly to its name before the term ends.
While such a transfer would benefit the Turkish company, it would result in an annual revenue loss of approximately USD 4 million for MTDC.
When MTDC was established in 2006, its shares were sold at MVR 100 per share. Currently, the face value of these shares fluctuates between MVR 12 and MVR 15. After operating at a loss for several years, the company has recently returned to profitability.
MTDC’s current revenue-generating properties include Magudhuvaa and Baa Kihavah Huravalhi, where Anantara Kihavah Villas is located. The company’s ongoing projects include the development of Haa Dhaal Naagoashi, funded by a loan from the Bank of Maldives, and an office building in Hulhumale'.
