The Maldives Integrated Tourism Development Corporation (MITDC), established in 2016 to promote medium-scale tourism in the Maldives, has recorded a loss of MVR 164 million without generating any profit, according to a special audit conducted by the Audit Office.

The audit covered the company’s operations from its inception to 2021. MITDC was launched during former President Abdulla Yameen’s administration, with Mohamed Shahid appointed as its first Managing Director. Under the MDP government, Mohamed Raaidh held the position, and it is currently headed by Hawwa Shiuna Khalid.

The audit found that, between 2016 and 2023, MITDC accumulated losses totaling MVR 164.2 million. The company’s total assets were valued at just MVR 3.1 million at the end of last year.

MITDC initiated three projects, none of which have been completed. The company has spent MVR 52.3 million on these projects as follows:

• Laamu Baresdhoo Integrated Tourism Project: MVR 22 million

• Kaafu Kaashidhoo Tourist Village Project: MVR 26.7 million

• Reclamation of three lagoons in Kaafu Atoll: MVR 3.6 million

To finance the projects, MITDC used advances from agreements under the Baresdhoo project and a USD 1 million loan from the Finance Ministry.

Jausa Construction, which was awarded the Baresdhoo project during Shahid's (who currently serves as a Minister of the President's Office) tenure as MD, received an advance payment of USD 975,000 (approximately MVR 15 million). However, the funds have not been recovered despite the project remaining stalled.

Additionally, MITDC failed to obtain the USD 910,000 performance guarantee required under the agreement signed on 24 April 2017, a violation of legal requirements.

The audit revealed that 35 private parties invested a total of MVR 55.3 million in the Baresdhoo project. While MVR 18 million has been repaid, MVR 36 million remains outstanding to 22 beneficiaries.

The Kaashidhoo Tourist Village project, valued at USD 1.8 million, was signed with a Chinese company on 3 February 2018, during Shahid’s tenure. Despite being only 35% complete, 52% of the allocated funds for the first phase had already been released. As of 26 January 2019, MITDC had spent MVR 26.7 million on the project, but no documents exist regarding the selection of the contractor or the tendering process.

The audit further stated that MITDC has failed to generate sufficient revenue and does not appear likely to complete any of its projects in the foreseeable future. It recommended that the company should not continue operations unless it can secure a reliable source of income.

The government has now decided to abolish MITDC and transfer its projects and responsibilities to the Maldives Fund Management Corporation Limited (MFMC) as part of a change in its mandate.