Following a verdict issued by the Civil court to Yacht Tours to handover the resort to MTDC, the resort is being handed over. This is some news for the many staff of the island who were laid off most unceremoniously in the midst of the chaos when the two operators were litigating against each other for the island.
Herethere is one of the many things that went wrong when politics and businesses were combined in the last days of the former government. It involved placating PA (Peoples Association a political party belonging to Yaameen the nephew of the former president) of which Jabir (of Yacht Tours) was a member at the time as well as accommodating the wishes a large number of business people who with various means were buying shares of MTDC which was up for grabs with little oversight using proxies etc. With the share buying frenzy coming to notice of the public and the transition from the former government to the current one many questions are being raised and many a tie that was tied in the last days of the former government are being untied. Yacht Tours seems to have been found on the wrong side of the law this time and is welcome news for the laid off staff who were seen protesting when MTDC hastily decided to give the island to Yacht Tours in the first place citing many grievances against the Yacht Tours which is famous for withholding staff pay for extended periods of time.
According to media reports MTDC has sent a four-member delegation to the resort to observe the situation there before making final arrangements to take over the resort and Yacht Tours is said to be extending cooperation to MTDC in the handover process.
MTDC had claimed that the cost of insurance and cost of the stock handed to Yatch Tours amounted to MRf 11 million which the Court has ordered to pay to MTDC in two months. The verdict was delivered on 23 July. Another case case filed by MTDC to get the outstanding rents from Yacht Tours for the resort is awaiting verdict.
Of the many islands Herethere resort is the only resort belonging to MTDC from which there is a an income to be generated and it is doubtful dividends can be paid to share holders if the outstanding rent is not received by MTDC.
MTDC has paid a dividend of MRf 9,000 in 2008, while the same has dropped to Mrf 2300 this years. Shareholders are unhappy they are receiving a very small dividend this year while a handsome dividend was paid last year. There are different stories why MTDC decided to pay such a large dividend last year when some sources who bought very large numbers of shares has recovered their entire investment in one shot raising many questions.