News

Previous management's actions incurred huge loss to MTCC

The Chief Executive Officer (CEO) of Maldives Transport and Contracting Company (MTCC) Abdulla Ziyad has revealed significant losses incurred by the company due to the actions of the former management.

Addressing the media, CEO Ziyad explained that the previous management had rented barges and dredgers for various projects. However, the prolonged rental periods for some of these assets resulted in costs equivalent to their purchase prices. Consequently, these projects have led to a substantial decline in the company's revenue.

Ziyad further noted that, despite the ongoing rental of barges to sustain project activities, the extended rental periods, spanning three to four years, have accumulated costs comparable to outright ownership. He emphasised that this situation has significantly impacted the company's financial standing.

Drawing attention to MTCC's dredging fleet, Ziyad highlighted that out of the five dredgers in possession, only one is currently operational. He added this operational dredger is engaged in land reclamation activities in Hirilandhoo, Thaa Atoll. Additionally, he mentioned that the remaining dredgers are in a state of disrepair, and three out of the five barges have sunk.

CEO Ziyad assured that efforts are underway to address shortages in barges and landing craft by seeking financial support through a loan. The company is actively working towards resolving these challenges to restore its operational capacity, he noted.