MVR 29m in compensation to Kulhudhuffushi hospital’s former Indian operator
The Alternative Dispute Resolution Committee had recommended compensation amounting to a total of MVR 29 million.
By
Aishath Fareeha Abdulla
Government paid MVR 29 million as compensation to Nurul Islam International Private Limited (NII) for terminating an agreement to run Kulhudhuffushi Regional Hospital (KRH), an audit report revealed on Thursday.
Kulhudhuffushi hospital was handed over to NII on June 20, 2017, during former President Abdulla Yameen Abdul Gayoom's administration.
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The company was entrusted to run the hospital for a period of 50 years
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As per the agreement, the company was asked to develop the hospital to tertiary level with 150 beds
In December 2017, the hospital was taken over by the health ministry after the quality of its services started deteriorating, apart from not carrying out development work as per the agreement.
On the request of the hospital, the Auditor General's Office conducted a special assessment on payment of dues for bills submitted by various individuals seeking the payment for services and goods acquired by NII to run the hospital. The assessment was made as follows.
After conducting the assessment, the audit office in its report said that the company and the health ministry held negotiations abroad in April and August 2018 to resolve the issue peacefully before the termination of the agreement.
Subsequently, in January 2019, after discussions with the health ministry and NII, it was agreed that the contract would be scrapped after compensation for certain expenses, the audit report said. It was agreed to pay in compensation:
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Money billed for Aasandha for services provided by NII
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The cost of equipment acquired for the development of the hospital
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Some other expenses incurred for running the hospital
The Alternative Dispute Resolution Committee had recommended compensation, which, according to the audit, amounted to a total of MVR 29 million. These include:
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MVR 19.9 million as compensation to NII from Aasandha and equipment and machinery acquired to develop the hospital
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Medical consumables, salary of migrant workers brought to hospital and MVR 9 million as other expenses
The settlement agreement was signed on October 27, 2019, after the health ministry and NII agreed to terminate the agreement and pay MVR 29 million as compensation. The funds were released to NII by the finance ministry on November 21, 2019 and December 12, 2019.
According to the audit office's assessment report, the settlement agreement did not specify the procedure to be followed in respect of payment of unpaid dues to various individuals for the goods and services acquired by the hospital when it was managed by NII.
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Since the hospital was transferred to the Health Ministry, 157 bills have been filed by various individuals seeking the value of the goods and services acquired by NII to run the hospital during its tenure
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Out of this, the hospital has received goods and services worth MVR 1.7 million in 127 bills, but it has not paid the amount
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No evidence has been provided to the hospital showing that it has provided goods and services worth MVR 135,434 in 30 bills filed by 14 parties
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While the settlement agreement has been implemented and completed, the audit office's assessment has pointed out that if NII objects to paying the unpaid dues for goods and services acquired by various individuals during the hospital's operation, then the health ministry will have to pay the dues
