RTI shows RDC completed only 21 of 81 projects in five years as losses and delays mount

The Road Development Corporation (RDC), a state‑owned company that has consistently posted heavy losses, has completed just 21 of the 81 projects awarded to it over the past five years, leaving dozens of projects unfinished since the end of 2019.

The information was obtained by Sun under the Right to Information (RTI) Act. The request, submitted on May 20 last year, sought details of all projects signed and initiated by RDC since December 31, 2019, including total expenditure, current progress, scheduled completion dates, reasons for delays, and challenges faced during implementation.  

However, the information was only provided on Wednesday, six months past the legal deadline.

RDC said that details of all its projects are available on its website. But the most recent update visible on the site is from September 5, 2023, relating to the project to modernise the main roads of G.Dh. Vaadhoo.

According to the data shared, RDC was awarded 81 projects between December 31, 2019 and April 23 last year. Of these, 36 were road construction projects.

Out of the total projects:

• 60 remain in progress,  

• 40 of those are still within their contractual deadlines, and  

• only 21 have been completed.

RDC did not provide explanations for the delays, the difficulties encountered, or the dates on which physical work began, despite these being explicitly requested under RTI.

The corporation also confirmed that no new road construction projects were awarded to it from the time the current government took office until April last year.

RDC is among the most loss‑making state‑owned enterprises. According to the Privatization and Corporatization Board (PCB), the company recorded a loss of MVR 113.73 million in the first quarter of last year alone.

The PCB’s findings come as Finance Ministry figures show that, as of January 4, the government has spent MVR 1.9 billion on state‑owned companies this year, far exceeding the budgeted MVR 378.3 million by more than MVR 1.6 billion.

Despite its mandate as a road construction company, RDC has also been awarded projects such as the construction of police stations and hospitals, areas outside its core function.

The heavy spending on loss‑making state‑owned enterprises has fuelled public complaints about rising corruption, political hiring, and the awarding of projects without clear accountability.