Maldivian government has announced the dissolution of two state-owned enterprises, the Maldives Integrated Tourism Development Corporation (MITDC) and AgroNet, as part of its strategy to reduce unnecessary expenditures. As reported, by June 2024, expenditure on these companies has reached over MVR 42 million in overheads. 

MITDC was established during President Yameen's administration, while AgroNet was formed during President Solih's tenure.

For the current year alone, MVR 33.3 million has been allocated from the budget for AgroNet, and MVR 8.1 million for MITDC.

The functions of MITDC will be transferred to the Maldives Fund Management Corporation (MFMC), which has recently merged with the Business Center Corporation (BCC).

While the operations of AgroNet will be continued under the newly established Maldives Industrial Development Free Zone.

The decision to dissolve these enterprises was made during a cabinet meeting held on September 1, and the dissolution process is expected to be completed by the end of 2024.

There is no clear information provided regarding the future of the staff employed by MITDC and AgroNet, raising questions about potential redundancies or redeployments.

The decision reflects the government's ongoing efforts to streamline operations and manage public spending efficiently.