A special audit report on the reclamation of Thilafushi, Kaafu Atoll, has revealed that MVR 162 million in damages was paid to the contractor, Heavy Load Maldives, after the agreement was nullified due to the company's failure in carrying out the project.
Heavy Load was awarded the project to reclaim 156 hectares of the waste management island, for a total bid price of USD 21 million, on September 30, 2010.
According to the agreement, Parliamentarian Moosa Manik's shareholding company was scheduled to complete the project within a period of seven months, by April 25, 2011. However, the company only reclaimed 24 hectares, a mere 13 percent of the project.
Heavy Load and TCL Maldives entered an agreement on October 13, 2011, to temporarily halt the project. The project was not resumed since then.
After acquiring an advance payment of USD 3 million from TCL, Heavy Load proceeded to conduct another project from said funds.
Moosa Manik has since transferred his shares to his children.
- Maldives Transport and Construction Company (MTCC)’s bid was the most profitable proposal out of the various bids.
- MTCC’s proposal was cheaper than Heavy Load's. TCL would also be entitled to a longer period to pay their dues.
- Global land reclamation company Boskalis, issued a proposal to reclaim 100 hectares of the island. The proposal was rejected due to MTCC’s and Heavy Load's proposal to reclaim 130 hectares of land.
- MTCC proposed MVR 167 million (approximately USD 10.8 million), to reclaim 130 hectares of the lagoon, with a repayment period of four years, amounting to roughly MVR 3 million per month.
- Heavy Load’s bid cited MVR 270 million (roughly USD 17.5 million), with a repayment period of two years, amounting to MVR 11 million per month. - Heavy Load won the bid without placing any collateral worth the equivalent of the project.
- Heavy Load gave three vessels with a combined value of USD 1.8 million as collateral. However, this was in violation of the agreement.
- Heavy Load acquired MVR 5 million worth of fuel, from Fuel Supplies Maldives (FSM), on credit without the approval of TCL’s board.
- 85 percent of the credited fuel was used for another project by Heavy Load.
- Heavy Load did not specify a period to complete the project, while MTCC proposed a period of three years and two months.
- The bid was initially announced with the contractor conducting the project through their own funds. However, after acquiring the project, TCL changed the agreement and subsequently paid Heavy Load.
As per the agreement, TCL has the authority to terminate the agreement without paying any damages.
On December 30, 2014, the agreement was officially terminated. Heavy Load received Boduhuraa, Fares and Kudafares in Laamu Atoll. The three islands are valued at MVR 62 million (approximately USD 4 million).
Furthermore, the report noted that the decision to terminate the agreement and to give the three islands was negatively received in the discussion held at the Ministry of Economic Development.
The audit report stated that it was not in the best interest of TCL to award the damages to Heavy Load.
It is alleged that when President Abdulla Yameen Abdul Gayoom's administration enriched Heavy Load, Moosa subsequently changed factions from Maldivian Democratic Party (MDP) to Progressive Party of Maldives (PPM), remaining in support of Yameen until his landfall defeat in the September 23 Presidential Elections.
Former Managing Director of Thilafushi Corporation, Ibrahim Riyaz, was charged with abuse of authority in contracting Heavy Load, receiving a sentence of three years on October 29, 2014.
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