ACC recommends prosecution of Popular Maldives in MMPRC probe

The Anti-Corruption Commission (ACC) has asked the Prosecutor General's Office to pursue money laundering charges against Popular Maldives Private Limited in connection with the Maldives Marketing and Public Relations Corporation (MMPRC) corruption case.

According to the ACC, the case was forwarded for prosecution on 10 February.

The commission stated that its investigation found funds owed to the state from the lease of islands and lagoons for tourism development were transferred from SOF Private Limited to accounts belonging to Popular Maldives between February 2014 and October 2015.

The ACC said that on 13 July 2015, USD 150,000 was deposited into a Popular Maldives bank account through an SOF cheque.

According to the commission, the transaction was allegedly presented as a foreign currency exchange transaction involving the purchase and sale of US dollars.

The ACC stated that the company attempted to conceal the source of the funds and misrepresent how the money had been obtained.

Investigators also concluded that payments related to the acquisition of Th. Olhugiri were made using proceeds linked to criminal activity.

Under the lease agreement, the island was required to be developed into a resort within 36 months. The agreement also granted the Ministry of Tourism and Environment authority to impose liquidated damages or terminate the lease if development obligations were not met.

The ACC stated that the required development milestones had not been completed.

According to the commission, the requested charges fall under Article 53(a) of the Prevention of Money Laundering and Financing of Terrorism Act.

The ACC has also requested the recovery of the USD 150,000 involved in the transaction.

In addition, the commission said it would recommend that the Ministry of Tourism repossess Th. Olhugiri due to failure to meet contractual obligations.

The ACC further stated that discussions are continuing with the Prosecutor General’s Office regarding other cases connected to the MMPRC investigation.

During the administration of former President Abdulla Yameen Abdul Gayoom, funds generated through the lease of islands and lagoons by the Maldives Marketing and Public Relations Corporation (MMPRC) were transferred into SOF Private Limited accounts and later distributed to various individuals and entities.

The SOF accounts were frozen in 2020 before the freeze was lifted in 2022.