MTDC faces questions over alleged undervalued sale of Maguhdhuvaa head lease

Mohamed Ibrahim (Kudu), a lawmaker from the main opposition Maldivian Democratic Party (MDP), has asked the Maldives Tourism Development Corporation (MTDC) for clarity regarding allegations the corporation was going ahead a transaction to transfer the head lease for GDh. Maguhdhuvaa at below market value.

The government leased Maguhdhuvaa to MTDC in 2006 for the development of a tourist resort.

The corporation subsequently subleased the island to Turkey’s Ahmet Aydeniz Maldives in 2007, which developed Ayada Maldives, and began operations in 2011.

In a letter on Thursday, addressed to MTDC’s new managing director Haris Mohamed, Kudu, the parliamentary representative for North Galolhu, expressed concern over allegations that the corporation planned to transfer the head lease of the island to Ahmet Aydeniz Maldives at below the market value.

He said that the allegations had raised concerns from MTDC’s shareholders as well as the general public, and asked the corporation to clarify the matter.

Kudu asked whether the MTDC had engaged in discussions regarding transferring the head lease of the island, whether the corporation had approved such a transaction, and details of how it made the decision, if it had, as well as details regarding the evaluation process.

He also asked for information regarding the analysis the corporation may have conducted on the profit or loss from transferring the head lease instead of maintaining the sublease agreement, and a copy of documents showing the impact it would have on shareholder dividend.

Kudu also asked if the corporation’s former managing director Ahmed Niyaz or the board had refused to proceed with the transaction, and details if they had.

The allegations surfaced mere days after Niyaz was dismissed from MTDC, and replaced by Haris.