Popular Maldives, a company accused of receiving funds from the MMPRC scandal, has made a major allegation against the Anti-Corruption Commission (ACC) after the commission requested the Prosecutor General’s Office to press money laundering charges against the company.
In a defense statement released today, Popular Maldives stated that almost all the islands whose work was halted by the ACC among those sold through MMPRC have been released for development, and many of those islands have now commenced operations.
However, the statement from the company, in which the family of former Vilufushi MP Riyaz Rasheed holds an interest, noted that even though seven years have passed since the investigation began, Th. Olhugiri has not been released. The company claimed the island remains undeveloped because the ACC is "intimidating" investors by stating there is an ongoing investigation.
"...ACC has held this island for seven years to see if something can be achieved through an indirect route. However, as this is an island for which payment was made rightfully, this company has decided to go to court to seek justice," the Popular Maldives statement said.
Popular Maldives, whose shares are held by Riyaz Rasheed’s children, Reesham Riyaz and Rausham Riyaz, alleged that the ACC requested the PG Office to file charges only after the company went to court over the refusal to release Olhugiri and the court ordered the commission to be held accountable. The company further stated that if there were any sincerity in the ACC, they would not have held onto the case for seven years without concluding it.
The ACC stated today that between February 2014 and October 2015, out of the funds due to the state from leasing islands and lagoons for tourism purposes, SOF Private Limited deposited money into the account of Popular Maldives Private Limited.
The ACC said the investigation found that on July 13, 2015, USD 150,000 was deposited into a Popular Maldives bank account via an SOF check. It further stated that the company had attempted to portray this as funds received from a dollar-trading transaction.
According to the commission, Popular Maldives attempted to disguise the origin of this money, conceal the rights associated with it, and misrepresent how the funds were obtained.
The ACC investigation also found that the money paid as the acquisition cost for Olhugiri was obtained through criminal activity. It was noted that the lease agreement for Olhugiri specifies that a resort must be built and developed on the island within 36 months of the signing date, and if these requirements are not met within that period, the Ministry of Tourism is granted the power to claim liquidated damages and the authority to terminate the agreement.
However, the ACC stated that the requirements stipulated in the agreement have not been fulfilled.
Along with the request for money laundering charges, the ACC has asked the PG to recover the USD 150,000 obtained by Popular Maldives through the prosecution. Additionally, the ACC has decided to forward the matter to the Ministry of Tourism to repossess Olhugiri for the state.
The ACC said that in addition to this case, the commission is consulting with the Prosecutor General's Office to reach a decision on pressing charges in several other serious cases related to MMPRC. The commission did not provide further details.
According to a report released by the ACC following the investigation into the MMPRC scandal that took place during former President Abdulla Yameen's administration, the state lost MVR 1.4 billion by selling islands and lagoons for tourism at undervalued prices.
The Parliamentary Public Accounts Committee previously revealed that MVR 14.6 million of the MMPRC scandal money has been traced to those who used it, supported by evidence beyond a reasonable doubt.
