The opposition Maldivian Democratic Party (MDP) has decided to go to court to stop funds for the 206 projects that were distributed without a bidding process and to quash amendments to the Public Finance Rules to allow the cabinet to award projects without an open bidding process.
The projects worth MVR 2.7 billion were awarded to 53 private companies. Many of the projects were awarded to government-affiliated parties. Among them, companies belonging to five ruling party MPs were awarded projects amounting to MVR 746 million.
The MDP National Council held a meeting last night where a motion was proposed by Hoarafushi Constituency President Ahmed Saleem to decide the party's stand on the matter. The motion was passed unanimously, noting that the changes to the Public Finance Rules were unlawful.
MDP agreed to take six measures;
- Condemn the decision to award the projects at President Mohamed Muizzu's direct order and call on the government and the companies involved to cancel the unlawful agreements.
- Call for the state institutions to investigate this crime and take immediate legal action, while officially submitting complaints to the relevant authorities.
- File a court case to quash the unconstitutional amendment to Public Finance Rules.
- Ask the court to issue an order to stop the funding of these projects due to the potential substantial loss that the state may face.
- If immediate action is not taken, the next MDP government will look into these issues and take legal action.
- Those who now refuse to investigate these cases should be removed from their positions in the MDP government and prosecuted for failing to perform their official duties and aiding corruption.
The 206 projects were distributed on November 6 during a grand ceremony to private companies without bidding and without any transparency to fulfil Muizzu's pledges.
The government has been accused of violating the fiscal law by signing the project agreements. Social media users denounced it as an outrageous looting of the state.
The government claims the projects are contractor-financed. But in reality, loans have been arranged through the national bank, Bank of Maldives (BML), at nine percent interest rates. In case the companies do not repay the loans, the government will have to face the obligation.
