Auditor General's Office (AGO) has stated that the Maldives Road Development Corporation (MRDC) was liquidated under former President Abdulla Yameen's administration at a time the state-owned company was owed a huge sum in payments.
MRDC was established by a Presidential Decree in August 2010 to construct, develop and repair roads on islands. The company suspended operations in April 2018 and transferred its employees and assets to other government agencies.
In the audit report for the Ministry of Finance for the year 2019, the AGO cited the reason for liquidating MRDC in 2018 which includes inadequate progress of projects awarded to the company, delays in major projects, and the misuse of company funds.
MRDC was assigned to a company in May 2018 to undertake the liquidation, calculate the assets and liabilities, and formulate a detailed report of the amount owed to the company. However, the AGO noted that the company had not prepared the report. MRDC is to receive USD11.1 million from various parties, but the company was liquidated without receiving the money, according to the 2017 figures.
The AGO recommended the state follow proper procedures in the liquidation of a state-owned company such as calculating and providing the amount owed to the company prior to its liquidation.