PG asks police to expedite MVR 44m payment probe
Critics allege that the company, whose owner joined MDP during the previous administration, benefited unfairly from the settlement.
Prosecutor General’s Office on Thursday requested the Maldives Police Service to expedite its investigation into the payment of MVR 44 million to North Coast Construction, the company contracted to build the Aasandha building in Hulhumale.
In 2016, North Coast Construction, owned by former Isdhoo MP Ali Hameed, was awarded a contract to construct a six-story office building in Hulhumale. The project faced delays, and the company was later awarded a larger project by the government as compensation for losses incurred. The company received an advance payment of MVR 44 million twice.
The finance committee of parliament brought the issue to the attention of the Prosecutor General’s Office, which has called for a thorough and expedited investigation.
According to a statement by the Prosecutor General’s Office on Thursday:
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The matter is of significant public interest and involves state resources.
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A special investigation team has been formed to address the case.
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Any other projects involving the same parties will also be investigated.
North Coast Construction was originally contracted to construct a six-story multipurpose building at the Hulhumale Hospital site, including private rooms and an auditorium. Key details include:
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The contract was signed in 2016, but work stalled due to budget constraints.
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In 2018, funds were expected to be included in the following year’s budget. However, a change in government led to new management at Aasandha.
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The new administration opted for a settlement agreement, agreeing not to seek compensation for damages caused by the stalled project.
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The company received 30.3% of the total project cost as an advance, amounting to MVR 44 million.
The issue has raised concerns about potential misconduct. Critics allege that the company, whose owner joined the Maldivian Democratic Party (MDP) during the previous administration, benefited unfairly from the settlement.
At a parliamentary finance committee meeting in July, Deputy Speaker Ahmed Nazim highlighted that the company was expected to lose MVR 18 million due to the project’s halt. However, the subsequent award of a MVR 44 million project as compensation was described as a significant issue requiring scrutiny.
