The opposition Maldivian Democratic Party (MDP) has requested Prosecutor General (PG) Abbas Shareef to order the relevant authorities to investigate and take legal action against the massive corruption in the distribution of 206 projects without bidding.
The party sent a letter to Abbas on Monday saying there was no transparency and fairness in signing the projects. The MDP said the amendment brought to the Finance Rules to distribute the projects worth MVR 2.7 billion violates the Finance Act.
“There is concern that these changes could disrupt the entire procurement system of the state and completely undermine confidence in the financial system of the country,” the MDP said.
Reasons cited in the MDP letter
- Changing the rules in violation of the Finance Act to allow projects to be awarded without bidding
- Government did not announce the projects in advance
- Only government-affiliated companies were selected
- Assignment of projects to companies not included in the register of contractors
- Not considering the technical ability and experience of the companies
- Similar projects awarded at different values
- No guarantee is required
“The independence, transparency and best interest of the state procurement system is hampered, and this opens space for embezzlement of state funds and property,” the MDP letter said.
The MDP has submitted a petition to the Anti-Corruption Commission (ACC) to investigate the cases and plans to go to court to stop the allocation of funds for the 206 projects.
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.
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.
