MTCC blames city council for financial losses

The Maldives Transport and Contracting Company (MTCC) has today announced its intention to take legal action against Male’ City Council (MCC), alleging that negative rumours spread about the company had cost the companies shareholders money.

In a statement, reported by Haveeru, the MTCC refuted the council’s claims that it had to pay MVR 2.6million (US$170,000) in land rent. It further alleged that rumours started by MCC had directly resulted in the halting of its MVR 213.6 million (US$14 million) project to develop a lot close to Villimale’ ferry terminal.

The company also stated that, contrary to warnings received from the MCC, the council did not have the authority to find an alternative provider for ferry services in the greater Male’ area.

In today’s statement, the MTCC argued that the services it was providing were in accordance with the agreement signed with the government. It stressed that it had made efforts to improve the service without raising prices in line with hikes in the local Goods and Services Tax (GST).

The company was forced to reconsider raising fares last September after large protests outside the Villimale’ terminal. In June, it was revealed that the MTCC had made a  loss of Rf 89 million (US$5.7 million) in 2011.