Former Tourism Minister Dr. Abdulla Mausoom says allowing state-owned enterprises (SOEs) to develop resorts is a “not successful” model that risks enabling corruption, drawing parallels to the MMPRC scandal.
Speaking to Sun on Monday, he argued that government-owned companies tasked with promoting or operating tourism have historically failed to deliver development outcomes and warned that moving SOEs into core tourism operations would crowd out private investment and distort resources available to ordinary entrepreneurs.
On Saturday, President Dr. Mohamed Muizzu ratified amendments enabling the allocation of islands, land, or lagoons for tourism purposes, including development of tourist resorts and integrated resorts. The changes also empower the President to allocate islands or lagoons under council jurisdiction for tourism and allow SOEs to receive allocations for projects such as yacht ports. The amendments further authorize the Tourism Ministry to defer rent and penalties during closures mandated for redevelopment, as provided in regulation.
Tourism Minister Dr. Abdulla Mausoom. (Sun Photo/Fayaz Moosa)
Mausoom told Sun that the precedent of government-formed tourism companies had “already shown” how public companies can facilitate corruption, referencing the MMPRC scandal as the country’s largest to-date. He argued that resort development requires financial and operational capacity on a scale, “millions and billions of dollars”, that current Maldivian SOEs do not possess, citing teh State Trading Organization (STO)’s stalled hotel project as an example of execution risk.
Mausoom added that SOEs entering resort development effectively means the government is stepping into guesthouse-scale business alongside the public, which he framed as interference in resources and opportunities available to ordinary people. He criticized the policy shift as inconsistent with the industry’s 50-year evolution, contending that altering market structure at the core of the “golden” tourism sector could depress private participation.
A guesthouse in Maldives.
He also said parliamentary power is now being used to “legalize corruption,” predicting that foreign investors and private parties may hesitate if government companies dominate allocations. While he acknowledged that the current administration maintains sectoral regulation, and cited Maldives’ recent run of World’s Leading Destination accolades, he argued that regulation alone does not mitigate model risk if SOEs directly compete in resort development.
Mausoom’s remarks arrive amid ongoing public concern over the MMPRC scandal and asset recovery. Recent official updates have highlighted mixed progress: the Anti-Corruption Commission (ACC) stated in late 2025 it is investigating dozens of MMPRC cases with duty prosecutions underway, and has ordered recovery in excess of MVR 120 million; officials previously reported large recovery directives and systemic obstacles to banking transparency slowing investigations. Parliamentary figures have also publicly claimed identification of individuals linked to specific MMPRC outflows, while acknowledging broader enforcement and accountability challenges across successive administrations.
Then-vice president Ahmed Adeeb Abdul Gafoor (L) with then-President Abdulla Yameen Abdul Gayoom (R). (File Photo/Sun)
Context on MMPRC recovery and enforcement
ACC recovery directives and caseload: The ACC reported active investigation of 37 MMPRC fraud cases with 15 under duty prosecution, and ordered authorities to recover MVR 123.7 million, reaffirming its commitment to pursue cases alongside police and the Prosecutor General’s Office.  
Earlier ACC conclusions: In mid-2024, ACC officials told Parliament they had concluded 115 MMPRC-related cases, instructing recovery of MVR 640 million, and noted delays tied to questions over which state body should sue, along with challenges accessing banking data under current oversight.  
Parliamentary statements: In August this year, the Deputy Speaker said individuals who used MVR 14.6 million linked to the scandal had been identified, and cited administrative actions against corruption within SOEs, while reiterating the scale of the MMPRC fraud and its involvement of high-level officials.