RDC Spent MVR 161 Million Without Documentation, Reveals MD

The state-owned Road Development Corporation (RDC) spent over MVR 161 million without proper documentation, according to the company’s current Managing Director, Brigadier General (Retired) Ali Zuhair.

He disclosed this information to the parliament’s State-Owned Enterprises Committee yesterday.

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Zuhair stated that the company found no records explaining the expenditure of MVR 66 million in 2022 and MVR 95 million in 2023.

Deputy Managing Director Mohamed Asbah Ali Naseer added that these amounts were transferred via internet banking without any details in the transaction remarks to indicate the purpose of the payments.

The company’s Chief Financial Officer previously had the authority to approve transactions up to MVR 1 million without further approval.

All personnel involved in these transactions have since been reassigned, and stricter payment protocols have been implemented. Now, any payment exceeding MVR 35,000 requires the Managing Director to seek approval from a second individual.

Asbah also revealed that in November, shortly before the government transition, the Finance Ministry disbursed MVR 90 million to RDC.

He noted that this sum was used to settle payments owed to specific companies, suggesting preferential treatment.

“Since we took over, we have not been able to verify bills to that amount. It appears these payments were directed to certain companies exclusively,” he said.

Currently, RDC is under investigation by both the Maldives Police Service and the Anti-Corruption Commission (ACC). A special audit has been commissioned from an external firm, and the Auditor General’s Office is conducting an independent audit.

Zuhair, who was appointed by President Dr. Mohamed Muizzu in late November, highlighted several issues, including overspending and corruption, that plagued the company prior to his leadership.

He noted that upon his appointment, RDC had only MVR 4 million in its accounts and was burdened with a debt of MVR 837 million. The absence of audits for 2021 and 2022 further complicated the assessment of the company’s financial state, as all documents had been seized by police as part of their investigation.

According to Zuhair, RDC had been awarded 35 projects, with work stalled on 17 that had started. The company faced additional issues, such as excess expatriate staff inflating payroll costs and vehicles and materials hired at excessive rates. To address these issues, the new management has taken steps to cut costs, including laying off redundant staff, procuring materials at lower rates through State Trading Organisation (STO), and renting vehicles at more competitive prices.

These measures have resulted in savings of MVR 19 million per month, despite the addition of 10 new projects. Zuhair estimated that these cost-cutting efforts would save RDC MVR 234 million by the end of the year.

Following the meeting, the chair of the committee announced plans to request updates from the police and the Anti-Corruption Commission on their ongoing investigations.