Adam Azim Denies Accuracy of MTCC Debt Allegations

Former Chief Executive Officer of the Maldives Transport and Contracting Company (MTCC), Adam Azim, has refuted the claims made by the new administration regarding MTCC’s debt, dismissing them as inaccurate.

Azim’s response comes in the wake of a report published by MV+, which he claims misrepresents the situation.

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Taking to Twitter, Azim refuted the claims, stating, “This is wrong information.” He further highlighted that reports conducted by International Audit Firms are readily available on the MTCC website. According to Azim, these reports indicate an average profit of MVR 200 million. 

He emphasised the importance of disseminating accurate information, particularly given MTCC’s status as a public limited company with widespread public involvement.

Azim urged for the publication of correct information, underscoring the potential repercussions of misinformation on a company that involves numerous citizens. He warned that a lack of regard or respect for the company could lead to its devaluation.

The new administration of MTCC had exposed the precarious financial condition it inherited from the previous administration. The state-owned enterprise, once touted as a success story, is now burdened with MVR 954 million in debt while facing a staggering MVR 1.7 billion in outstanding receivables, according to them.

Allegations of mismanagement were highlighted by the revelation that several projects initiated by the former leadership had ground to a halt, forcing the new team to scramble to identify root causes and implement urgent solutions.

CFO Hussain Mohamed Manik detailed MVR 1.7 billion in owed payments, a significant portion of which (approximately MVR 800 million) is due from the government itself. MTCC’s own debt stands at MVR 954 million, with half of that owed to foreign entities, according to the CFO.

“Company borrowings (loans) stand at 100 million,” Manik added, highlighting MTCC’s reliance on debt financing. He outlined a strategic shift towards private projects aimed at earning dollars, a move designed to ease the company’s debt burden and increase financial resilience.

The dire situation is reflected in the company’s quarterly report, which indicates an MVR 66 million decline in net profit compared to the previous year. Ziyad attributed this partly to an overreliance on government projects, which accounted for 85 per cent of MTCC’s revenue when he took over. He emphasised the need for diversification into private sector projects, trading, and new business ventures as critical for restoring profitability.