Siruhan denies link to cigarette smuggling

Progressive National Congress (PNC) MP Mohamed Siruhan has denied any involvement in the illegal removal of 575 cases of cigarettes from a bonded warehouse in Male', saying the company in question, Exotic Enterprises, did not engage in any unlawful transactions during his time as a shareholder.

In a statement issued yesterday, Siruhan responded to claims made about him in a report by Parliament’s National Security Services Committee, (241 Committee).

According to the committee’s report, Exotic Enterprises initially registered its bonded warehouse with the Maldives Customs Service under shareholders Lubna Hussain Manik and Abdulla Hassan. Their identification numbers were also published in the report.

However, when the company imported counterfeit cigarettes on 9 December 2023, its shareholders were listed as Lubna Hussain Manik and Mohamed Siruhan, now the MP for Hithadhoo constituency.

Siruhan was not a member of parliament at that time, having been elected later in the 20th parliamentary elections held in April 2024.

In his statement, Siruhan said he became a shareholder in Exotic Enterprises in 2023, after confirming that the company was legally registered and operating in accordance with the law. Shortly after joining, he decided to step back from business to focus on politics, giving up his shares in several companies, including Exotic Enterprises.

“I would like to assure the people of Maldives that during my time as a board director and shareholder of Exotic Enterprises, the company did not engage in any transaction in violation of Maldivian law,” he said.

Siruhan, known to have close ties with businessman Ahmed Arif (Aatte), the owner of Lotus and currently under arrest for allegedly funding the theft of two containers of cigarettes from the Maldives Ports Limited terminal in Hulhumale', said he had transferred his shares in Exotic Enterprises following an internal audit.

He said the audit would confirm that “no illegal goods were taken out from any of the company’s bonded warehouses” during his involvement.

Siruhan also rejected allegations that shares were transferred to him during the smuggling operation.

“If the company has done anything wrong since or before the transfer of shares, it has nothing to do with me. These allegations are politically motivated,” he said.

The 241 Committee’s report stated that Exotic Enterprises had imported counterfeit cigarettes under a brand name held exclusively by another company. The brand’s rights holder obtained a court order preventing the release of the goods, which were then stored in a bonded warehouse under joint control of the company and Customs.

According to the report, Customs later discovered that the cigarettes had been removed without authorization and that the warehouse had since been closed. Customs ordered Exotic Enterprises to pay MVR 47.1 million in duties for the missing goods, but the company failed to do so. The case has now been referred to the Attorney General’s Office for prosecution.