Finances deteriorate, putting existence of MRDC into jeopardy

Audit on 100 percent state-owned corporation – Maldives Road Development Corporation (MRDC) shows that finances of the corporation has deteriorated to an alarming level, raising questions as to how much longer it can hold on before having to be shut down.

The audit report on MRDC reads that the financial capacity of the corporation had not been taken into consideration when undertaking projects, and that the financial situation of the corporation had deteriorated to an alarming level, as a result of that.

It was also noted it the audit report that MRDC failed to honor the corporate governance code, that it was doing work beyond its mandate, and that multiple issues had been noticed to do with the mismanagement of the corporation.

The report said that the Board of Directors of the corporation had failed to sufficiently perform their duties and had not made an action plan or long-term strategic plan for the corporation, making it impossible to measure the progress of the corporation, and the extent to which it managed to meet its goals.

It was also noticed in the audit that MRDC failed to make assessments before undertaking a project, and that there was no documentation of any plan made to carry out the projects.

Projects undertaken by the corporation had not been sufficiently monitored – leading to the corporation failing to complete 92 percent of all projects undertaken from 2011 to 2014, on time.

The corporation had also not kept a log of vessels, machinery and equipment used in their projects.

It was also noted in the audit report that the results of a survey done by the audit office show multiple complaints regarding projects undertaken by MRDC throughout the country.

The audit office has advised MRDC to solve issues noted in the report, whip the management of the corporation into shape, and established a system to maintain records.