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ACC orders government to halt mega sewerage system project

18 December 2018, MVT 12:49
Fenaka Corporation signs the agreement with Sri Lankan company 'Haycarb Private Limited
18 December 2018, MVT 12:49

Anti-Corruption Commission (ACC), on Monday, ordered President Ibrahim Mohamed Solih's administration to terminate the project issued by the previous government to establish sewerage systems in 20 islands, under the management of a Sri Lankan company.

ACC revealed yesterday that the project, which was awarded to Haycarb Public Limited earlier this year, was called for termination to prevent huge losses the government would suffer if the project were continued.

The project was issued in July and was set to conclude within a time frame of 18 months.

The islands in which sewerage systems are to be established:

- Maarandhoo, Haa Alif Atoll

- Vashafaru, Haa Alif Atoll

- Finey, Haa Dhaalu Atoll

- Vaikaradhoo, Haa Dhaalu Atoll

- Foakaidhoo, Shaviyani Atoll

- Maafaru, Noonu Atoll

- Lhohi, Noonu Atoll

- Kinolhas, Raa Atoll

- Maalhos, Baa Atoll

- Goidhoo, Baa Atoll

- Olhuvelifushi, Lhaviyani Atoll

- Gulhi, Kaafu Atoll

- Feridhoo, Alif Alif Atoll

- Keyodhoo, Vaavu Atoll

- Dhigurah, Alif Dhaalu Atoll

- Hirilandhoo, Thaa Atoll

- Dhevvadhoo, Gaafu Alif Atoll

- Hoandeddhoo, Gaafu Dhaalu Atoll

The corruption watchdog instructed the President’s Office and Ministry of Finance, to terminate the project after noting a total of 12 complications related to the contract.

The Commission stated that the reason for raising these issues were due to speculations that this project was handed over to a certain company through alleged corruption in order for a specific person or party to acquire undue financial gains.

Furthermore, ACC noted that the cost of the project is sufficient to establish sewerage systems across 40 islands. Since the contract was financed through a loan taken under the state-run utilities firm, Fenaka Corporation, the Commission added that the agreement could possibly lead to the bankruptcy of Fenaka.

The statement released by ACC highlighted that the costs proposed by the Sri Lankan company for establishing sewerage systems in individual islands are unusually high compared to similar past and ongoing projects.

The contract to establish sewerage systems in 20 islands was issued to Haycarb for a total of USD 53 million (approximately MVR 866 million).

While ACC had ordered Fenaka to halt the mega sewerage system project in early October, Fenaka’s spokesperson had stated that he was not aware of ACC’s order at the time.

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