Advance payment loss puts Maldive Gas vendor approval under scrutiny

State-owned Maldive Gas has incurred a loss of USD 246,645 (approximately MVR 5 million) paid as an advance for a gas shipment ordered in October 2024, after the supplier failed to meet required vendor standards, according to information obtained by Atoll Times.

The payment was made as part of an order valued at USD 800,000. Under Maldive Gas vendor registration rules, companies supplying shipments of that size are required to have an annual taxable income exceeding USD 5 million and to submit audited financial statements for the previous two years.

However, the supplier, Dubai-registered Jaksa Energy Trading, reported revenue of USD 1.4 million in its financial statements dated 31 December, falling USD 3.6 million short of the required threshold. The company’s net profit for the year was also insufficient to support an order of that value. Its net profit for 2023 was reported at around USD 100,000.

Despite this, Jaksa Energy Trading was approved as a vendor of Maldive Gas under special authorisation granted by Managing Director Abdulla Mohamed. The managing director signed the vendor registration form, stating that the audited financial statements would be submitted within 45 days.

Sources told Atoll Times that no managing director of Maldive Gas had previously approved a vendor under similar conditions, including during the COVID-19 period.

Meanwhile, members of parliament have accused Abdulla Mohamed of causing losses of around USD 250,000 to Maldive Gas through gambling-related activity. No official response has been issued by Maldive Gas or the managing director regarding the allegations at the time of publication.