Audit says MRDC liquidated wrongfully

The Auditor General’s Office has stated that Maldives Road Development Corporation (MRDC) was dissolved with a lack of procedures during former president Abdulla Yameen Abdul Gayoom’s regime.

The finance ministry's 2019 audit report released by the Auditor General's Office on Thursday stated that the President's Office had written to the company on 2 January 2018, informing it of the dissolution of MRDC, stating the reasons for its dissolution. 

According to the audit report, the reasons stated in the letter are:

The audit noted that an agreement was signed with a company on 20 May 2018 to liquidate MRDC. The audit found that the liquidator was required to: 

The report, however, pointed out that the liquidator had not prepared a detailed report on the assets, liabilities and dues of MRDC. According to the report, MRDC was owed MVR 171.7 million from various individuals in 2017, but the company was dissolved without obtaining the money.

The audit has recommended that a government company should follow certain procedures pertaining to liquidation. In this regard, the audit advised not to dissolve a government company unless the money and debts owed to the company are properly calculated and cleared.

During Yameen's tenure, MRDC was dissolved and its operations were brought under the public works section of the housing ministry. The company was dissolved after major corruption cases were blown within the company.

President Ibrahim Mohamed Solih has established the Road Development Corporation (RDC) in place of MRDC. The company is also carrying out road development projects as was done by them.