MTCC Flat issue: ex-CEO Shah, four others to be prosecuted

Anti Corruption Commission has forwarded the names of former MTCC CEO Hassan Shah and four other then senior officials of the company to the Prosecutor General for prosecution.

The ACC has forwarded these names after investigation into allegations of corruption in the awarding of a contract to build two towers of MTCC flats in Hulhumale'.

In a press release issued yesterday, the ACC said that they have appealed to the Prosecutor General to press charges for seeking to provide undue benefits to the contractor in awarding the project.

The ACC has requested for charges in the case to be pressed against then MTCC CEO Hassan Shah, General Manager and Tender Evaluation Committee Member Shifau Ali, H. Fairy Land, Tender Evaluation Committee members Hussain Zuhuree, Paakeeza, Sh. Komandoo, Mohamed Nazim, M. Pompiya, Ismail Adhuham, G. Nila.

The case investigated by ACC concerns allegations that in the MTCC housing project conducted during the administration of former President Abdulla Yameen, the contract to build two towers of flats had been awarded to a foreign company who submitted bid proposal through granting them points against the evaluation criteria.

Although there were breaches of contract which should have led to cancellation of the contract, MTCC had failed to do so, and had instead granted them advance payments and progressive payments, ACC said.

They said that there had been efforts to contract work included in the contract as separate projects, and MTCC had failed to dissolve the agreement despite breaches of contract by the contractor. This led to significant financial losses to MTCC, ACC said.

ACC has asked to press charges of abuse of official position to reap undue benefits to oneself and others and of acting otherwise in a matter which could have brought profit to the State.

Additionally, Shifau is to be charged with a crime stated in Article 80 of the Penal Code.

ACC further said that they have instructed MTCC to recover the financial loss caused in the case amounting to MVR 39,241,855.78, and other losses.

MTCC contracted RI Engineering Works Pvt Ltd in 2017 to construct two towers of flats for MVR 439 million.

The agreement was voided in 2021. By this time, only the foundation was laid for the two towers. This amounts to only 7.15 percent of the total project. The work remains halted to date.