Minister of Finance Ibrahim Ameer, on Thursday, asserted that he did not permit the Ministry of Health to transfer 90 percent of the payment without a bank guarantee, referring to the ventilators procured from Dubai company Executors General Trading LLC for Maldives' COVID-19 response.
According to a compliance audit report released on August 16 by the Auditor General's Office on health ministry's spending of state funds for the COVID-19 response, the advance payment was in violation of the Public Finance Act, which mandates the state to acquire a performance guarantee by the companies.
Ameer defended himself in the Parliamentary Committee on Public Accounts after the health ministry's Financial Controller Ahmed Aslam claimed that the advance payment for Executors General Trading was completed with Ameer's permission.
The finance minister stressed that health ministry was not given the green light to carry out any transactions outside of the Public Finance Act, despite the urgency of procuring supplies due to the ongoing pandemic.
He maintained that the permit was given, under Article 10.67 of the Public Finance Act, for the health ministry to complete the advance payment only after receiving a bank guarantee. Per Ameer, the health ministry had assured that the ventilators would not be delivered unless 75 percent of the total cost was paid off.
Ameer further stated that the health ministry requested for permission to acquire the ventilators as swiftly as possible, claiming that the supplier was recommended by the World Health Organisation (WHO), while experts had projected that a delay in procuring the ventilators may lead to loss of life.
Despite the concerning situation, Ameer reiterated that health ministry was ordered to carry out the procurement process in line with the Public Finance Act.
"[Health ministry] was not permitted to disregard the payment guarantee required under [Article] 10.67's [Clause] (d), and this is even stated in their agreement", Ameer told the Public Finance Committee.
"Since Ministry of Finance had not granted an exemption on the payment guarantee, [the payment guarantee] must be obtained", he said, adding that the payment guarantee must be secured now if it was not obtained already.
Health ministry stated that the 75 ventilators ordered from Executors General Trading will be delivered on August 30, after a delay of three months.
Speaking at the Parliament Committee, the finance minister stated that measures will be taken to recover the MVR 30 million advance payment to the supplier if the state does not receive the ventilators.
"The agreement mentions delay charges. In case of arbitration, [the agreement] states that it should proceed in Maldives' Arbitration Centre".
He stated that finance ministry was leading efforts to gather all necessary details in case the ventilators are not delivered.
"The ventilator contract in question is still an ongoing contract. Although some issues have raised, the health ministry is still trying to acquire the products under the contract", Ameer said.
In addition to Ameer, the committee has questioned various individuals, including Auditor General Hassan Ziyath and Health Minister Abdulla Ameen along with the ministry's senior executives, regarding the controversial ventilator deal exposed in the audit report.
The health minister, as well as other ministry staff, have maintained that they had operated in line with the Public Finance Act and relevant procedures to procure the ventilators, asserting that nothing was done to facilitate corruption or illicit enrichment for any entities.
Ameen and other health ministry officials also raised concerns over the compliance audit report allegedly "glossing over most details", and painting the ministry, as having shifted the blame onto the WHO, in an unflattering light.
However, the finance minister focused his scrutiny on the health ministry's bid committee and Financial Controller Ahmed Aslam's negligence in striking the deal.
Currently, the Anti-Corruption Commission and Maldives Police Service are conducting a joint investigation into the health ministry's COVID-19 expenditures highlighted in the audit report.
In connection with the controversy, President Ibrahim Mohamed Solih has suspended several senior officials sitting on the health ministry's bid committee as well as the financial controller.
Following the public uproar over the corruption allegations revealed by the Auditor General's Office, Minister Ameen also recused himself from all duties until the investigation is concluded.
The ministry is currently headed by the acting minister Mohamed Aslam, the incumbent Minister of National Planning, Housing and Infrastructure.
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