The Anti-Corruption Commission (ACC) has launched an investigation after a private company connected to politicians with strong links to the current administration was awarded a contract to build local council offices.
RCC belongs to Maafannu North MP Mohamed Nazim. His brother, Ahmed Usham, is the Attorney General in President Mohamed Muizzu's government. The company was contracted for the MVR 631 million project without an open bidding process.
The anti-corruption watchdog confirmed an investigation was underway, but declined to say whether the probe was launched on its own initiative or after complaints from a private party.
Malaysia's Hextar Global was first contracted for the project in January this year. The project involved establishing council buildings in 55 islands across the Maldives. But the agreement was later cancelled because there was no progress over six months.
After cancelling the agreement, the government began efforts to contract RCC in July, and an agreement was signed on August 16. The Local Government Ministry awarded the project to RCC on a contractor financing basis.
Local Government Minister Adam Shareef confirmed that the total value of the agreement is MVR 631 million and the government is to pay the amount back to RCC within five years once the buildings are completed. This is a rate of about MVR 11.5 million for each building.
Adhadhu has learnt that RCC is funding the project with a loan from the national bank, Bank of Maldives (BML).
A source familiar with the loan taken by RCC told Adhadhu that the financing for the project was provided with a government guarantee. However, the source declined to share further details.
The exact amount taken as a loan from BML is unclear. Adhadhu reached out to RCC Chairman Nazim for comment. But he declined to say anything because the media "writes whatever they want."
The project was awarded to RCC without any tender announcement or bidding process. Concerns were raised as RCC is a family company of government-aligned MP Nazim and AG Usham.
