RDC, Maldives’ biggest loss‑making SOE, ordered to pay MVR 7 million despite financial struggles

The Road Development Corporation Limited (RDC), the biggest loss‑making government‑owned company, has been ordered by the Civil Court to pay MVR 7 million to a Maldives‑based firm within three months.  

Civil Court Judge Faisal Adam issued the order on Monday, relating to MVR 7.11 million owed to Cartunes International Pvt Ltd for services provided to RDC. While the exact nature of the services remains unclear, RDC admitted during trial that the payment was due.  

RDC told the court that the money had not been paid due to the company’s financial difficulties. Cartunes had sought MVR 7.11 million, MVR 1 million in compensation, and MVR 30,000 in court costs, but the court did not grant recovery of the additional claims.  

The court allowed both parties to negotiate a settlement, but Judge Faisal noted that talks had failed to produce a solution.  

RDC’s financial struggles have made it difficult to meet the payment. In October, the President announced that RDC would expand its capacity within two months to operate simultaneously across multiple islands.  

According to the Privatization and Corporatization Board (PCB), 12 state‑owned companies posted a combined loss of MVR 280 million in the first quarter of this year. RDC recorded the largest loss, at MVR 113.73 million, and has faced repeated allegations of corruption.  

Figures released by the Finance Ministry earlier this month show that MVR 1.9 billion has been spent on state‑owned companies this year, far exceeding the budgeted MVR 378.3 million.  

Critics argue that the state continues to spend heavily on loss‑making enterprises, amid complaints of corruption and politically motivated recruitment.