MTDC makes high profit in last quarter with compensation for Naagoashi

Maldives Tourism Development Corporation (MTDC) made a huge profit in the last quarter of 2016, owing largely to compensation payment it received for repossession of H. Dh. Naagoashi by the State.

The island of Naagoashi was leased to MTDC to build a tourist resort.

State terminated the contract and repossessed the island in in October, 2016.

Delay in compensation payment by the State led a four-month delay in the released of its last quarter financial report for 2016.

MTDC was even fined MVR 30,000 by Capital Development Authority over the delay in release of the quarterly financial report.

The financial report shows MTDC made a profit of USD 5.8 million in the last quarter of 2016 – USD 3.9 million of which came from the compensation payment.

The number pushes the total profit MTDC earned in 2016 to over USD 12 million (approximately MVR 187 million).

The amount is the highest annual profit the corporation has earned.