Shareholders have called to investigate the transactions made by Maldives Transport and Contracting Company (MTCC) to purchase a dredger.
At the Annual General Meeting, shareholders expressed dismay for failing to disburse shares. The shareholders noted the revenue generated by the company, the losses faced recently and the purchase of dredger for huge sum of money.
The dredger, named Mahaa Jarraaf, was built in Denmark and brought to Maldives in 2017, at a cost of USD 36 million. MTCC has planned to conduct land reclamation projects in Maldives and abroad with the purchase of the dredger, the largest such vessel in the region.
Last week, has revealed although several harbour expansion and land reclamation projects were conducted last year, it faced a loss of USD 880,593.
In the annual report published by MTCC, CEO Hassan Shah said the company faced difficulties to finance the loan to acquire its largest dredger, which cost USD 36 million. Shah added towards the end of the previous administration, MTCC was forced to conduct project for a cost lower than the actual value. However, he said MTCC will gain profits from the harbour expansion and land reclamation projects conducted in 2019.
At the Annual General Meeting, shareholders highlighted the dredger could have been purchased for a mere USD 16 million, adding spending an amount over the market value to purchase the vessel has resulted in a huge loss to MTCC and the shareholders.
Citing acts of corruption in the purchase of the dredger, shareholders called on MTCC to form an independent committee to investigate the allegations.