MVR 161m in 2 years without documentation, RDC says

The Road Development Corporation (RDC), set up by the previous government, had released MVR 161 million to various beneficiaries over a period of two years without any authorised documents, the company said on Monday.

Senior RDC officials said this in response to questions asked of them when they were summoned to the State Owned Enterprises (SOE) Committee of Parliament on Monday to clarify information on corruptions committed by the previous management of the companies and steps taken to prevent recurrence. 

The investigation into the alleged embezzlement of RDC funds began in September. The case is being investigated by the police and the Anti-Corruption Commission (ACC).

Asked about the company's financial transactions in connection with the fraud case, RDC Managing Director Ali Zuhair said the company had disbursed large amounts of money without any supporting documents.

“We haven’t found any documents yet,” he said.

The company's Deputy Managing Director Mohamed Asbah Ali Naseer added:

“… The only data we found on these transfers are the transfer records available through internet banking platform,” he said.

"The bank slip of the transaction did not contain any information, even as remarks; which services, property, or for what purpose is unknown”.

In addition to the issue of large amounts of undocumented funds, Zuhair also noted that the RDC's budget had been spent significantly at the end of the last government.

He said the Finance Ministry had deposited MVR 90 million into the RDC's account through the bank in early November last year.

“But when we took over the place, the balance in the account was MVR 4 million,” Zuhair said.

The total amount of MVR 90 million is a huge amount, Asbah said, adding that MVR 90 million has not been billed since he took over the company in efforts to keep it standing.

"This is done to pay certain companies through the system. We can say this categorically," Asbah said.

"We don't see any document supporting this, but if you look at the statements, there is no more money to be paid to them [the companies]. It [the money] was disbursed to certain companies and certain people”.

A special audit of the RDC was commissioned last year to uncover details of undocumented financial transactions made during the previous government. The RDC said the work is already underway.

The company said it has taken a number of measures so far to prevent a repeat of the money laundering case and will continue to do so in the future.

Asbah noted that under the previous rule, the Chief Financial Officer (CFO) had the power to transfer up to MVR 1 million without the permission of anyone else. However, he noted that the rule has now been changed and strengthened:

Asbah also said some employees have been transferred to other departments due to illegal financial transactions and necessary action will be taken against them as per the company policy.