Maavashu MP Ahmed Shakir has submitted a formal request to the People’s Majlis seeking an inquiry into the Maldives Port Development Company—a joint venture established in secrecy by three state-owned enterprises (SOEs). The member has requested that the matter be referred to the SOE Committee for further investigation.
Registered last month, the shareholders of the newly formed Port Development Company are Maldives Ports Limited (MPL), Housing Development Corporation (HDC), and the State Trading Organisation (STO). The company’s board is composed of the Managing Directors and senior executives from these three parent entities.
In his submission, Shakir noted that while the legal framework allows for the creation of companies, the manner in which this entity was established raises concerns. He emphasised that such matters warrant direct parliamentary oversight.
"The creation of a separate entity through the partnership of three state-owned enterprises raises critical questions regarding state finances, corporate governance standards, parliamentary accountability, and transparency. Although there is legal provision under the Companies Act to form such an entity, these are matters that the People’s Majlis must scrutinise," Shakir’s submission stated.
Shakir’s proposal calls for a comprehensive review of the Port Development Company’s formation, ownership structure, financing mechanisms, and operational framework.
The submission outlines 10 areas for investigation. It requests the acquisition of all incorporation documents, articles of association, shareholder agreements, and board resolutions. Furthermore, it seeks details on approvals from the Privatisation and Corporatisation Board (PCB) and the Ministry of Finance, as well as corporate plans, feasibility studies, and financing particulars.
The key areas proposed for investigation regarding the Port Development Company include
- The legal procedures followed and board approvals granted for the company’s formation and investment.
- Whether necessary authorisations were obtained from the PCB, the Ministry of Finance, or other relevant authorities.
- Whether the establishment of this company and its investments align with the existing corporate plans of the parent SOEs.
- Details of capital, assets, guarantees, loans, staff, and other resources contributed or pledged by each parent company.
- The commercial justifications and feasibility studies reviewed by the respective boards prior to the decision.
- Compliance with the Companies Act, PCB guidelines, public finance regulations, and corporate governance codes applicable to SOEs.
- The process for appointing the Managing Director and board members, and whether any conflicts of interest exist.
- Whether the company’s procurement policies for goods and services are robust and secure.
- Whether the company falls under the oversight jurisdiction of the PCB and the Auditor General.
- Whether this corporate structure allows state assets, expenditures, debt, and procurement to bypass the standard accountability mechanisms required of government companies.
- Whether the creation of an additional company by three existing SOEs contradicts the government’s stated policy of downsizing and streamlining state enterprises.
Another critical point raised by Shakir is the issue of asset ownership arising from three state entities forming what is essentially a private company. He argued that utilising the capital of SOEs to create a private entity constitutes an attempt to alter the nature of state-owned property.
In addition to the SOE Committee, Shakir has requested the Public Accounts Committee to investigate the company’s financial dealings. He further urged that if the parliamentary inquiry uncovers any violations of laws or regulations, the Majlis should exercise its authority to take action and refer the findings to the Audit Office and the Anti-Corruption Commission (ACC).
Information obtained by Adhadhu suggests the company was established because MPL lacked the necessary funds to purchase the land required for the Thilafushi port development. HDC was granted shares in exchange for land, while STO was included to strengthen the company’s standing on paper.
A confidential source familiar with the Port Development Company’s operations told Adhadhu that the entity’s primary function would be to manage multi-million-dollar procurements for the Thilafushi port. The source alleged that the private company structure was chosen to bypass the competitive bidding processes required of state companies, thereby facilitating single-source procurement.
