MWSC: Voids agreement over complaints, action to be taken

State owned water company Malé Water and Sewerage Company (MWSC) has canceled its accommodation agreement for the foreign employees of its subsidiary company Island Beverages Maldives (IBM) and will take disciplinary action against involved staff, following complaints about the agreement's finalisation process, said Managing Director Abdul Matheen Mohamed.

Matheen told Mihaaru that the board received complaints about the agreement from within the company last month, way before the issue surfaced on social media. As such, MWSC's board has notified IBM to cancel the agreement on 18th of this month, he said.

"When we [MWSC] received the complaint, we audited the process. We have to audit when complaints arise, no? When we looked into it, there are aspects that need to be improved, there are issues in the process too. We did an assessment of the prices as well, and we realised that it is in the best interest to re-announce it," he said.

The company's audit committee has examined the matter and recommended the cancellation of the agreement, as well he added.

“If there is any negligence on the part of an employee, it will also be investigated,” Matheen assured.

According to Matheen, the company's board has decided to follow the advice of the audit committee.

“So we notified IBM, on the 18th of this month, to cancel the agreement,” he said.

A case of alleged corruption in agreements to lease a two-storey building for IBM's foreign employees and its godown space came to light yesterday. A copy of the agreements has also been leaked on X.

Both agreements were signed with a company identified as Tele Maldives, and both were signed without a tender process.

The first agreement, signed on August 27, stipulated a monthly rent of MVR 60,000. The agreement was then canceled and a price of MVR 200,000 was fixed in the second agreement signed on October 22. This is MVR 140,000 more than the initial rent. However, the later agreement provided for accommodation as well as storage space.

The five-year agreement includes an advance of MVR 400,000. IBM's Managing Director Mohammed Jinan Jaleel signed the agreement on behalf of the company.