ACC investigates RCC council building project

The Anti-Corruption Commission (ACC) has begun investigating allegations that Rasheed Carpentry and Construction (RCC) was awarded a contract to construct council buildings at twice the expected cost.

RCC received the contract last month to build council office buildings in 55 islands on a contractor-finance basis. The project, valued at MVR 631 million, was awarded without a public announcement.

Local Government Minister Adam Shareef said the project was granted to RCC after it submitted the lowest offer among four bidders.

The decision has been criticised. RCC is owned by MNP Member of Parliament Mohamed Nazim. Former President Abdulla Yameen said the project was not opened for competitive bidding and estimated that similar work could cost about MVR 225 million.

The project is being financed through a loan from the Bank of Maldives, guaranteed by the government.

The ACC confirmed to Dhaur that the case is under investigation but declined to provide details, citing the ongoing nature of the inquiry. It is unclear when the investigation began or whether it was initiated by the commission or prompted by a complaint.

The project, estimated at USD 36 million (MVR 555 million at the official rate), was initially awarded to Malaysia’s Hextar Global under an agreement signed in January. That agreement was cancelled in July.

In December 2023, amendments were made to Finance Rules allowing some government projects to be awarded without open bidding.

Work under the current contract was scheduled to begin last month, with completion set for within one year. RCC is also responsible for procuring council furniture and constructing boundary fences.