MTCC fined by MVR 30,000 for failing to submit financial statements

The Maldives Transport and Contracting Company (MTCC) has been fined MVR 30,000 for failing to submit its audited financial statements within the legally mandated timeframe.

In a formal announcement, the Capital Market Development Authority (CMDA) stated that the penalty was imposed under Article 46 of the 'Regulation on the Minimum Criteria for Periodic Information Disclosure by Issuers of Securities.' The authority clarified that the MVR 30,000 fine was levied because MTCC failed to submit its financial report for the fourth quarter of last year, as well as the audited financial statements for the same year, by the prescribed deadlines.

MTCC had previously requested several extensions after failing to disclose its financial records on the originally stipulated dates.

There are currently three mandatory financial reports pending from the company: the financial statements for the fourth quarter of last year, the annual audited accounts for the previous year, and the first-quarter financial report for the current year.

The report for the fourth quarter of last year was due for publication by March 10 at the latest. However, after that deadline passed, MTCC requested additional time for a third time.

It is noteworthy that MTCC is a public limited company with significant private shareholding. Consequently, it is legally required to publish its financial records transparently for its shareholders.

The delay in disclosing these financial statements comes at a time when economists are expressing growing concern over the weakening financial health of state-owned enterprises (SOEs). Furthermore, political opponents have voiced concerns regarding the challenges these companies face in managing and financing the numerous government projects simultaneously awarded to them.