After cancelling the contract with Malaysia's Hextar to build council offices, the government has awarded the project to RCC, owned by businessman and Maafannu North MP Mohamed Nazim, without a tender.
The government signed the agreement with Hextar in January to build council offices on 55 islands. But Adhadhu can confirm that the Local Government Ministry has cancelled the agreement because there was no progress over six months.
A reliable source told Adhadhu on condition of anonymity that RCC found out when the agreement with Hextar was cancelled and submitted a proposal for the project. The source said he was unaware how RCC found out about the agreement cancellation.
But the source stated that a similar agreement was reached with RCC, with payments from the government promised in dollars.
If the same agreement were signed with the RCC, the company would spend USD 36 million to build the council offices. The government will have to pay six months after the company completes the construction and hands over the facilities.
Nazim could not be reached for comment.
Building new council offices is an important policy of the current administration. The government plans to build council offices in more than 100 islands. Fifty of these buildings will be constructed with grant assistance from China, while the rest will be funded through the state budget.
