MDP to file court case over project awarding without bid process

Main opposition Maldivian Democratic Party (MDP) has passed a motion to file a court case seeking an injunction to halt the issuance of payments to private companies under 206 projects which were awarded by the government without a competitive bidding process, and revoke amendments which led to projects being awarded in this manner.  

MDP’s National Council passed the motion put forth by MDP’s Hoarafushi constituency president, former deputy parliament speaker Ahmed Saleem, during a convening on Saturday night.

Presenting his motion, Saleem said the government awarded 206 projects to companies linked to prominent government officials without a bid announcement, preventing other companies from partaking in the bidding process. Moreover, he emphasized that some of the companies awarded projects by the government are not listed in the contractor registry and are currently in the process of dissolution.

According to Saleem, the projects were awarded by the government without assessing the technical and financial capabilities of the companies. He also alleged that similar types of projects were awarded at varying costs.

Saleem cited this as a violation of the constitution. Therewith, he said the agreements signed by the government will be void. He further alleged the involvement of national bank, Bank of Maldives (BML)’s head involvement in the matter and as such, emphasized the need to take legal action against them.

In his resolution, Saleem put forth the following proposals:  

To call for the nullification agreements executed between the government and the companies the projects were awarded

To file complaints with independent institutions, urging them to investigate the case and take action against those involved

To file a court case seeking to nullify the amendments to the public finance regulations that permit the government to award cabinet-selected projects directly to a company of the government’s choice, without a competitive bidding process

To seek an injunction to halt the disbursement of payments to the companies the projects were awarded

If the government fails or refuses to take action or investigate the case, the next MDP administration will pursue corruption charges and take action accordingly

The amendment to the Public Finance Regulation on October 13^th allows the government to award any and all government contracts without a competitive bidding process as long as it receives approval from the cabinet or a committee formed by the cabinet.

Accordingly, Article 10.20 (b-1) of the Public Finance Regulation now states that relevant state institutions may carry out projects pertaining to basic needs of the people, enhance their quality of living, and security services projects under single-source procurement with authorization from the cabinet or a cabinet committee.

Single-source procurement allows a buyer to forgo a competitive bidding process and choose to purchase goods or services from a single vendor, even though other capable suppliers exist.

The amendment allows government contracts deemed as pertaining to basic public services, enhancement of quality of living, and security services projects to be awarded without an open and competitive bidding process.

The Public Finance Regulation had previously allowed single-source procurement for government contracts only under exceptional circumstances where there is no time to carry out a competitive bidding process, or where multiple bids aren’t deemed likely due to the value of the contract.

Notably, since the current administration assumed office, majority of the government projects were awarded to the state-owned companies without a competitive bidding process which prompted huge backlash from the private sector. 

On the contrary, the government, on Thursday,  formalized agreements for 206 projects which were awarded to 53 companies. The people-centered development initiatives cover nine key sectors, including sports, education and health.