MP seeks answers from MTDC over reported sale of Maguhdhuvaa lease

Galolhu Uthuru MP Mohamed Ibrahim has sought clarification from the Managing Director of Maldives Tourism Development Corporation (MTDC), Haris Mohamed, over reports that the head lease of Gaafu Dhaalu Maguhdhuvaa is being sold below market value to the company operating Ayada Maldives.

The government leased Maguhdhuvaa to MTDC on 17 September 2006 for tourism development.

On 26 October 2007, MTDC subleased the island to Turkish investor Ahmet Aydeniz for the development of a resort. The resort opened in 2011 and has since operated as Ayada Maldives.

MTDC continues to receive sublease rent from the resort. However, recent reports have claimed that the company is considering the sale of the island's head lease at a price below market value.

Following the reports, Mohamed Ibrahim sent a letter to Haris Mohamed on Thursday requesting information and documents relating to the reported transaction.

In the letter, the MP asked whether discussions are underway regarding the sale of the head lease and, if a decision has already been made, requested details of the decision, including how it was reached and by whom.

He also sought information on whether assessments had been carried out on the benefits and potential losses of the proposed sale, and requested copies of any related studies and supporting documents.

The MP further requested details of any valuation conducted for the head lease and asked for information on the parties involved if negotiations are ongoing.

Mohamed Ibrahim also asked whether MTDC had assessed the impact of the proposed transaction on shareholder dividends, company profits or losses, and the corporation's share price on the Maldives Stock Exchange.

In addition, he requested information on whether the recent change in MTDC's management was linked to the transaction, asking whether the former managing director, board members or senior management had objected to the proposal and, if so, their reasons.

"As your company was established to directly deliver the benefits of tourism to the Maldivian public, maintaining the trust of the general public and shareholders requires transparency in conducting such transactions," Mohamed Ibrahim said in the letter.

"I also request that if there are any concerns regarding the disclosure of the aforementioned information, you share them with me."