Adhadhu has learnt that projects worth MVR 2.7 billion were distributed to companies linked to leading figures in the ruling People's National Congress (PNC) in violation of the Economic Council’s rules in awarding projects under single-source procurement.
The Economic Council's rules of awarding projects under single-source procurement without an open tender are not shared with the public. But Adhadhu has obtained a verified draft of the rules.
The rules were drafted by the Economic Council this year. It is believed to have been drafted after the Public Finance Rules were amended to allow the Cabinet to award projects to handpicked companies on a single-source basis.
Under the changes, three types of projects could be awarded on a single-source basis. They are:
- Projects related to the basic needs of the public
- Projects that improve the quality of life
- Special projects for security services
The definition of projects under these three categories is very broad. In summary, all types of government-funded projects can be awarded under the rules.
But several sources told Adhadhu that some projects do not fall within the broad definition of projects that could be awarded on a single-source basis.
They pointed out the MVR 15 million project to build the outer walls of schools in 15 islands as one such example.
The scope of the project, which was awarded to a company called Solex, includes only the construction of the outer walls of schools. According to the Economic Council's rules, the project only fits under "projects related to the development of education, culture, literature and the arts."
However, if building the outer walls falls within this definition, even simple matters that are not structural works, such as buying paper for schools, can be awarded by the Economic Council.
Another reason for concern is that some companies would not have passed the technical evaluation if the rules had been followed before distributing the projects. These include an evaluation by a state office or ministry, as well as a technical assessment by a three-member committee in the President’s Office.
