The decision comes in the wake of an incident involving the loss of a USD 240,000 (MVR 3.7 million) advance payment made by Maldive Gas in October last year to Dubai-based Jaksha Energy for a gas shipment.
Board of Directors of the State Trading Organization (STO) has approved the temporary transfer of all gas procurement responsibilities from its subsidiary, Maldive Gas, to STO.
The decision comes in the wake of an incident involving the loss of a USD 240,000 (MVR 3.7 million) advance payment made by Maldive Gas in October last year to Dubai-based Jaksha Energy for a gas shipment.
STO’s media official, Yoosuf Shah, speaking to Mihaaru News said that the company has suspended all gas supply activities handled by Maldive Gas and has assumed full responsibility and authority over its procurement.
Although Vice-Speaker Ahmed Nazim during a last weeks Parliament Finance Committee meeting said that STO had taken over gas procurement from Maldive Gas, the board decision was only finalized later.
The controversy surrounding the lost advance payment surfaced during the committee meeting, where it was revealed that Maldive Gas had switched from its usual supplier without providing a clear reason. The Dubai-based company had received 30 percent of the shipment payment upfront, Nazim had said.
Nazim said Maldive Gas was unable to explain the reason for the supplier switch, and the then company's Managing Director Abdulla Mohamed was given the opportunity to recover the funds, which he had failed to do.
Anti-Corruption Commission (ACC) is now investigating the matter, while a senior official from Maldive Gas said Thursday that legal action is being pursued against Jaksha Energy.
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