The former governor of Maldives Monetary Authority (MMA), Azeema Adam, claimed that she had ordered the central bank's Financial Intelligence Unit (FIU) to investigate suspicious transactions between Maldives Marketing and Public Relations Corporation (MMPRC) and privately company SOF.
Azeema made the declaration in her statement to the Anti-Corruption Commission (ACC)'s investigation into the embezzlement of MVR 1.3 billion from Maldives Marketing and Public Relations Corporation (MMPRC). ACC's long-awaited report, which was publicised Thursday, revealed MMA's negligence in the largest corruption scandal in the history of Maldives.
ACC highlighted that FIU had not fulfilled its lawful responsibility to look into suspected acts of money laundering and terrorism financing, and reporting such cases to the relevant authorities. The report noted that FIU had not taken any action against MMPRC's embezzled funds being laundered through SOF.
According to the report, FIU was informed of the suspicious transaction of a cheque for USD 59 million from MMPRC to SOF in 2014. The private company is owned by people close to former Vice President Ahmed Adeeb, who is currently serving a hefty jail sentence over his involvement in the MMPRC scandal.
However, ACC stated that FIU had not investigated the issue properly despite having received detailed information. Among those receiving the brunt of the accusation is MMA's former governor, Azeema Adam.
In his statement to ACC's investigation, FIU's former head, Ibrahim Athif Shakoor, claimed that the then governor of MMA, Azeema Adam, had been urged to further investigate the major transactions of SOF highlighted in FIU's report. However, Azeema had objected to filing a police report, with the excuse of lacking enough members and resources in FIU to tackle the issue, according to Athif.
Azeema's statement to ACC conflicts with Athif's allegations of her negligence in acting against the MMPRC embezzlement.
She confirmed that Athif had informed her of SOF's suspicious transactions in 2014, and that she had instructed the FIU to probe the issue. She highlighted that she had also told Athif to investigate the case, since SOF was not a company authorised to make the US Dollar transactions it did with MMPRC.
However, Azeema also noted that SOF had during that time requested MMA for authorisation to sell US Dollars. She added that, according to Athif, ACC and the Auditor General's Office were also looking into SOF at the time.
Azeema stated that she had informed Athif that, as the head of the FIU which is an independent body of MMA, he was the one with the authority to decide on actions to take regarding SOF's transactions, as well as filing the case at the authorities.
"I didn't give [FIU] any specific instructions," she had told ACC.
She went on to assert that it was not her role to order FIU's decisions on investigations, as the unit was an independent body of MMA. She stated that although FIU informed her of some of its investigations, they did not "report" to her and she did not hold meetings with the unit outside of discussions regarding regulations.
ACC's report cited Azeema that her instructions to the head of FIU included orders not to inform her of the independent unit's actions, and for the head themselves to make decisions regarding FIU's investigations.
The statements given by some staff of MMA to ACC back Azeema's claims. Some of the statements highlighted that the head of FIU held the authority to make decisions for the unit, and some also shared uncertainties whether FIU's findings on SOF's transactions had been informed to the former governor.
The former FIU chief Athif had resigned from his position on June 21, 2015, after the MMPRC case came to light. According to ACC's report, the reason for his resignation was incapability to fulfil his lawful responsibilities as the head of FIU.
ACC's report brought to light that the central bank of Maldives had been negligent in taking action against suspected money laundering in the case of MMPRC and SOF. Amongst the reasons included were that FIU did not look into the major transactions SOF made via Bank of Maldives Ltd (BML) and Bank of Ceylon (BOC), the withdrawals made after a state firm (MMPRC) deposited substantial amounts to SOF's account, and as to why SOF refused to provide information requested by BML regarding the money deposited by MMPRC.
In the report detailing that evidence to suggest that the acquisition costs of islands and lagoons owed to MMPRC had been embezzled and laundered through SOF, ACC stated that FIU had neglected to fulfil its mandate to forward cases of suspected money laundering to relevant authorities for further investigation. The report also reveals the identities and accounts of individuals and businesses that received millions from SOF.
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