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MVR 32 million to be paid to Maldives in compensation for ventilators

Arbitration has ruled the court case on unsupplied ventilators in Maldives' favor on Wednesday last week. The ruling mandated a payment of MVR 34.62 million to be issued in compensation to the Maldivian government.

Aishath Shuba Solih
27 February 2024, MVT 14:23
Health Ministry officials sit down with the parliamentary Public Accounts Committee to discuss the ministry's compliance audit report, which accused the ministry of corruption in procuring ventilators for Maldives' COVID-19 response -- Photo: Nishan Ali / Mihaaru News
Aishath Shuba Solih
27 February 2024, MVT 14:23

Maldives has won the case submitted to the Maldives International Arbitration Center regarding Dubai’s Executors General Trading’s failure to provide ventilators for the treatment of critical Covid-19 patients according to the agreement with the former government.

This case regarding the Executor company’s violation of the agreement signed between the Ministry of Health and the company on February 2, 2023, during former President Ibrahim Mohamed Solih’s administration, was proposed to Arbitration in February last year. The Maldivian State had demanded payment for the damages incurred as a result of Executor’s failure to provide the agreed ventilators, alongside reimbursement of funds for the unsupplied ventilators, which sums up to a total of USD 2 million (MVR 32 million).

A statement released by the Attorney’s General office today stated that the Arbitration's final verdict on the case was made on Wednesday last week which mandated the Executors General Trading company to compensate the price of the ventilators, USD 1,888,750 to the Maldivian administration. The AG's office further highlighted that the decree by the Arbitration commanded the Executors company to pay an annual interest of two percent to the Maldivian government from May 2, 2021 until the payments are completed.

Additionally, the office shared that the recipient of the complaint, Executors General Trading had not attended the case proceedings. Highlighting that the Maldivian government had settled funds due to the Arbitration by the company following the progression of the trial, Maldives had further demanded compensation for this payment.

Health Ministry officials sit down with the parliamentary Public Accounts Committee to discuss the ministry's compliance audit report, which accused the ministry of corruption in procuring ventilators for Maldives' COVID-19 response -- Photo: Nishan Ali / Mihaaru News

The Arbitration had decreed the decision to issue a payment of USD 132,865 to Maldives in compensation of the expense and further allocated an interest rate of 2 percent until these payments have been settled.

Arbitration had mandated a total payment of USD 2,245,365 or MVR 34.62 million to be issued to the Maldivian government.

At a time when the threat of Covid-19 had escalated in the country, the government had issued a payment of MVR 34 million to Executors General Trading without a bank guarantee to purchase 75 ventilators.

While a large sum was issued at once, the government had neglected to inspect the company’s capability to supply the ventilators as agreed. The audit report and Anti-Corruption Committee (ACC)’s investigation report had revealed that no probe went into the details and credibility of the company. Consequently, the company had failed to supply the ventilators as agreed.

Executors had supplied a portion of the ventilator’s first shipments to Maldives. However, they were not in functional conditions. Due to the failure to supply the remaining ventilators, the Health Ministry had demanded a compensation of MVR 31 million. However, this payment was also not delivered.

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