Committee recommends govt proceed with MITDC liquidation

The State-Owned Enterprises (SOE) Committee of the Parliament has recommended that the Ministry of Finance proceed with the necessary procedures to liquidate the Maldives Integrated Tourism Development Corporation (MITDC), in line with the government’s earlier decision.

The Cabinet decided on 1 September 2024 to dissolve MITDC as part of its cost-cutting and restructuring of state-owned enterprises. The decision also includes the transfer of MITDC’s functions and projects to the Maldives Fund Management Corporation (MFMC).

Although nine months have passed since the Cabinet decision, MITDC has yet to be formally liquidated.

The SOE Committee, after reviewing the financial status of both MITDC and the Maldives Marketing and Public Relations Corporation (MMPRC), reiterated the importance of following through with the liquidation process.

According to the Ministry of Finance’s briefing to the committee, MITDC has not functioned effectively since its establishment, and maintaining the company imposes a significant cost on the state budget. The ministry highlighted that liquidating MITDC is part of broader efforts to reform government-owned companies and improve fiscal sustainability.

The ministry has instructed MITDC to cooperate fully and take necessary steps for the liquidation. These steps include:

The committee recommended that, in accordance with Section 213 of the Companies Act, the Ministry of Finance ensure the recovery of dues, the payment of legitimate debts, and compliance with all legal provisions in the liquidation process. It also noted the importance of ensuring the designated liquidator fulfils all required responsibilities.

The committee’s report was scheduled for presentation in the previous parliamentary sitting but was not tabled before the session concluded.