Ministry of Homeland Security and Technology has submitted a case to the police requesting an investigation into a case where USD 3.6 million deposited by the former government of Maldives to an Indian company for the construction of police stations in various islands has vanished without a trace.
The project was handed over to India's Indira Project Joint Venture Company by the former Maldivian Democratic Party led government.
In a press conference held on Tuesday, Minister of Homeland Security and Technology Ali Ihusan said that the agreement entered into by the previous government stated that police stations will be built in 61 islands at the cost of USD 41 million.
"On August 16, 2019, a company called Indira Project and Developments has expressed interest to the then government of Maldives to build 61 police stations in Maldives in a USD 41.18 million project," Ihusan revealed.
Referring to documentation found at the Home Affairs Ministry, Ihusan said that the agreement was for 85 percent of the project to be funded through India's Exim Bank, with Maldives' government providing the remaining 15 percent.
Exim Bank had later notified that it would not be able to extend the loan. However, records showed that the Maldives' government had already paid the 15 percent in advance by the time they had received this notice from Exim Bank, Ihusan said.
"Then on October 12, 2022, the records show that this Indira Project, was changed to a partnership called ABL Indira Projects JV in Maldives and registered," the Minister continued.
Since this change, the government's communications were then with the newly registered company, as per the Minister.
"Maldives' State received no funds from India's Exim Bank, even then. Without having gotten this, on March 7, 2023, the government paid the aforementioned company USD 3.6 million. This is a company that came under the pretext of bringing in funds from abroad and building police stations in Maldives. But the first funds to the company was given by the government, USD 3.6 million," the Minister said.
Ihusan said that since then, no communication had been made between the government and this company regarding the construction of police stations. Furthermore, later communications show no indication of what was done with the funds in question.
"On August 13, 2023, there is a notice that India's Exim Bank has decided not to extend that loan. That those funds will not be extended has been notified to the government. And yet, the government at the time had given the company USD 3.6 million," the Minister said.
The Minister further noted that although Exim Bank had notified the government that it would not be issuing the loan, it had added that it would be extending USD 5 million as free aid.
Ihusan said that the Ministry of Finance had notified the Maldives Police Services about this on August 24, 2023.
"Even to date, I am unable to find where that company is located, who to talk to at that company, or how to proceed with that company on building the police stations," Minister Ihusan said.
He said the matter has now been lodged with the police for investigation.
Noting that no work on the project is ongoing, the Minister said that the government had been notified on January 24 that the joint company had been dismantled.
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