The Maldives International Arbitration Centre has ordered Dubai's Executors company to pay USD 2 million as compensation for ventilators ordered by the Maldives during the covid-19 pandemic along with USD 100,000 to cover the state's legal expenses.
The previous government contracted Executors to procure 75 ventilators. Long after the delivery deadlines passed, the company sent over 15 ventilators. The remaining 60 ventilators were never delivered.
The total cost of the equipment was MVR 31,052,025. The Maldivian government sought USD 2,112,500 as compensation for overall damages of MVR 32,574,750.
The final award by the Maldives Arbitration Center ordered the company to pay the compensation to the Maldivian government. The company was also ordered to pay the government's arbitration fee of MVR 132,865.56 along with interest payments at the rate of two percent per year.
The Dubai company did not attend arbitration proceedings.
In early 2020, the company submitted a bid of MVR 34 million to supply the ventilators. The company had been paid MVR 30 million in violation of the public finance regulations without signing an agreement. The Health Ministry claimed that the company had been contracted upon the advice of the World Health Organization (WHO). But the WHO denied offering such advice.
As the corruption caused many losses to the Maldivian state, the Attorney General's office said further necessary action would be taken together with the relevant agencies.
After the company failed to deliver the ventilators, the Anti-Corruption Commission (ACC) investigated the case and ordered the recovery of the lost funds.
The ACC sought charges against 11 officials including former Health Minister Abdulla Ameen. However, the cases were sent back on four occasions with the Prosecutor General's office citing incomplete investigations.
The ACC then shelved the cases of eight individuals including Health Minister Ameen and sought charges against three people.
