The government is continuing with laying the foundation stone of local council buildings despite an ongoing corruption investigation after the project was awarded to a company linked to government-affiliated politicians.
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.
But President Mohamed Muizzu, who is currently campaigning in the atolls for the local council election, has laid foundation stone for council buildings in Thaa, Kandoodhoo, Hirilandhoo and Vandhoo on Wednesday.
Earlier this week, foundation stone was laid for council buildings in Vaavu Keyodhoo, Faafu Magoodhoo, Faafu Nilandhoo, Meemu Veyvah and Meemu Naalaafushi.
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. Neither BML nor RCC has commented.
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.
