MTCC and RDC Merger Leaves Management in the Dark, Audio Leak Reveals

An audio leak from a meeting of the Road Development Corporation (RDC) has revealed that neither the management of RDC nor the Maldives Transport and Contracting Company (MTCC) is clear on the direct path forward for the government's decision to merge the two companies. The leak, which captured an RDC management meeting, shows that no prior consultation had taken place among senior officials regarding the merger. In the audio, RDC Managing Director Ibrahim Nazeeem stated that the decision came without the former Managing Director of MTCC being aware or receiving any information. He said he remains unclear about how the change occurred or the reasons behind it. "No consultation has taken place with any party on how this change will proceed. The owners of both companies do not currently know the direction they will go in this matter," Nazeeem said. Nazeeem further noted that although President Dr. Mohamed Muizzu made the decision, the process will proceed through the Finance Ministry. Since the Finance Minister is currently out of the Maldives, no further details have been received. He estimated that completing the transition phase would take at least three months and ten days, or about two years. He also mentioned the possibility that RDC might become a subsidiary of MTCC. Regarding employees, Nazeeem stated that President Muizzu has given assurance that no employee will be dismissed. He denied rumors that only 600 out of RDC's 3,500 employees would be transferred to MTCC. However, he revealed that under the Finance Ministry's policy of "right-sizing" companies, work to reduce staff by around 1,000 employees—to lower the company's payroll from 47 million to 35 million—will continue. Nazeeem attributed RDC's financial difficulties to a large debt left by the previous government, noting that 80 percent of the company's problems are financial. He said that although RDC has signed projects worth approximately 10 or 11 billion Rufiyaa, the company is not expected to survive with the large debt remaining. He also noted that because the company's audit reports have not been finalized properly, there is no way to obtain loans. Despite the changes, the government has not ordered any ongoing projects in the islands to be halted, and management has requested that employees remain calm and carry out work as usual.