MDP appeals to PG over projects awarded without bidding

Maldivian Democratic Party (MDP) has submitted a case to the Prosecutor General (PG) asking for an investigation into the government's decision to award MVR 2.7 billion worth of projects to private companies without a bidding process.

In a letter sent to Prosecutor General Abbas Shareef yesterday, MDP stated that awarding projects to selected companies by the Cabinet without transparency or a competitive bidding process constitutes the misuse of official status and the misuse of official capacity to gain an advantage for oneself or another party. The letter requested that these acts of corruption be investigated and that measures be taken.

The MDP's submission to the PG comes after the party initially raised the issue with the Anti-Corruption Commission (ACC). At that time, the MDP had asked the ACC to protect the state from potential losses and, utilizing its legal authority to halt corrupt acts, submit the matter to the court to suspend the implementation of the agreements.

However, on November 6, an agreement was signed by the government with 53 private companies to initiate development projects across various islands, including firms associated with officials from the ruling party PNC. The MDP stated that the issue was forwarded to the PG due to stagnation in the ACC's investigation.

Additionally, the MDP expressed concern that when the current government took power, the country possessed a modern Public Finance system informed by a Financial Regulation developed with input from relevant authorities. However, they argued that subsequent amendments to this Regulation have facilitated opportunities for corruption, as it now permits the Cabinet or its committees to designate projects to any selected party through the Single Source Procurement method.

The party expressed concern that these changes could destabilize the entire state system and completely erode confidence in the Maldives' financial system, leading to numerous issues.

These concerns include:

President Dr. Mohamed Muizzu announced the awarding of 206 development projects, emphasizing a record achievement in signing agreements with private Maldivian companies. He assured that payment for the work would be secure and stipulated that physical work should begin within approximately 21 days from November 6. All awarded companies had submitted audited financial statements for the past three years.

"And furthermore, the completion of all procedures required by the bank for this purpose was necessary before reaching the point of signing here. Therefore, the work has been awarded to companies that have been operating very well, are operating very well, have very good results, and have a very good management team," the President said at the ceremony where the projects were awarded.