The Maldives Transport and Contracting Company (MTCC) has received a fine of MVR 30,000 for not providing its audited financial statements on time as required by law.

The Capital Market Development Authority (CMDA) formally announced that the fine was enforced according to Article 46 of the 'Regulation on Minimum Standards for Regular Information Disclosure by Securities Issuers.' The authority stated that the MVR 30,000 penalty was imposed because MTCC did not provide its financial report for the last year's fourth quarter, nor the audited financial statements for that year, by the required deadlines.

MTCC had earlier sought multiple extensions due to its inability to provide its financial records by the initially specified deadlines.

There are three mandatory financial reports currently due from the company: the financial statements for last year’s fourth quarter, the previous year’s annual audited accounts, and the first-quarter financial report for this year.

The fourth quarter report from last year was scheduled for release by March 10 at the latest. Nonetheless, following the expiration of that deadline, MTCC sought more time for a third occasion.

It is important to mention that MTCC is a publicly traded company with substantial private ownership. As a result, it is mandatory to disclose its financial statements openly for its shareholders.

The postponement of releasing these financial statements occurs during a period when economists are raising increasing worries about the deteriorating financial condition of state-owned enterprises (SOEs). Additionally, political rivals have expressed worries about the difficulties these firms encounter in handling and funding the multiple government initiatives granted to them at the same time.