Monday 22nd Jul 2024
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MTCC

MTCC In 954 Million MVR Debt, Previous Government Lied

The previous government had lied that the state-owned company, Maldives Transport and Contracting Company (MTCC), was running well, when in fact the company was in a very poor condition when this government took over the company, MTCC officials said.
MTCC CEO Abdulla Ziyad told a news conference today that the previous government had told the media that the company was running very well, but the company was heavily in debt.
He said the company's operating expenses were very high, and there was negligence in the management of the properties of the company.
Ziyad noted that some projects have been delayed due to some actions of the previous management, adding that audits are being conducted on issues that are harmful to the company.
He stated that when he took over MTCC, 85 percent of the company's revenue was from government projects. He said the company should be guided to success by running private sector projects, trading and entering new businesses.
Speaking at a press conference today, MTCC Chief Financial Officer (CFO) Hussain Mohamed Manik said the company has 1.7 billion MVR in outstanding debt, of which, about 800 million MVR is due to the government.
The company’s remaining debt is to other parties, including 50 percent of the debt being owed to foreign companies. This amount totals to 954 million MVR, he said.
Noting that, Hussain said it would be easier for the company to pay off its debt by going for dollar-generated projects. To this end, the company had started a $19 million project in January and had also progressed on a $1.1 million project.
He said the dollar revenue would provide the company with solutions to raise foreign exchange and debt repayment.
Hussain said MTCC's current target is to increase its trading revenue to 500 million MVR. Despite the challenges, it will be achieved by implementing projects in new sectors.