The Auditor General Office's (AGO) report has revealed that the Maldivian state had to pay the Indian company Noor Islamic International Private Limited (NII) MVR 29 million (USD 1.8 million) after the agreement between the company and the government was terminated.
NII was contracted to manage Haa Dhaalu atoll Kulhudhuffushi Regional Hospital during former President Abdulla Yameen's administration in 2017. They were contracted to run the hospital for 50 years.
The assessment report detailing the bills NII had sent while managing the hospital shows that the current administration terminated the agreement on October 27, 2019.
The Ministry of Finance repaid the company in November and December of 2019.
The deal was terminated after two of the company's shareholders, Faisal Khan and Ali Usaid, became embroiled in a dispute and the hospital could not function as per the agreement.
AGO's assessment report additionally shows that NII sent bills to 157 parties while they managed the hospital. The money spent on these bills amounts to MVR 1.9 million. Kulhudhufushi Regional Hospital has not paid MVR 1.7 million of this amount yet.
According to the AFO, when the settlement agreement was written up between the Maldivian state and NII, it did not detail how the money NII had spent on the hospital would be repaid. Since NII has been removed from all responsibilities pertaining to the hospital, it fell on the Ministry of Health to repay the bills.
AGO advises that when such settlement agreements are made in the future, it is important to ensure that any outstanding bills exist and to outline who would take responsibility for these payments. When the state is paying such bills, AGO also advises that they confirm whether Khulhudhufushi Hospital has received the equipment they are paying for.
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