MTCC in Billions of Debt, Reveals CEO

MTCC, the state-owned Maldives Transport and Contracting Company, owes billions of Rufiyaa to various parties, disclosed the company’s CEO Abdulla Ziyad in a recent press conference.

Ziyad shed light on the dire financial situation inherited by the current management, attributing much of the company’s financial woes to the neglect and mismanagement of the previous administration. 

advertisement

advertisement

advertisement

Ziyad highlighted a substantial outstanding debt, stating, “The previous management has not paid billions of rufiyaa owed to various parties.”

During the press conference, MTCC’s Chief Financial Officer, Hussain Mohamed Manik, provided a breakdown of the company’s financial liabilities. 

Manik revealed that MTCC is facing a significant debt burden, with MVR 954 million owed to various entities. Additionally, the company has accrued MVR 800 million in debt and is grappling with outstanding payments totalling MVR 1.7 billion.

“The company’s receivables stand at MVR 1.7 billion, with payables amounting to MVR 954 million, and borrowings reaching MVR 800 million. We are confronting these challenges head-on,” remarked Manik.

Elaborating on the factors contributing to MTCC’s financial losses, CEO Ziyad pointed to costly lease extensions of barges and dredgers employed for project implementation during the previous management’s tenure. Ziyad highlighted the adverse impact of these lease extensions on the company’s revenue streams, noting, “Some of the barges and dredgers have extended their leases, with rent increases surpassing the cost of purchasing them.”

Furthermore, Ziyad highlighted operational setbacks, revealing that out of the company’s five dredgers, only one is operational, with the remaining units rendered irreparable due to damage. Additionally, three out of five barges have reportedly sunk, exacerbating MTCC’s operational challenges.

In response to the critical shortage of operational assets, Ziyad disclosed plans to secure a loan, aimed at addressing the shortage of barges and landing crafts. He affirmed the company’s commitment to enhancing revenue streams and navigating a path towards financial recovery.