Maldives incurs MVR 2.3 million loss due to agreement with Apollo Hospital

It has come to light that the Maldivian government incurred a loss of $150,000 (MVR 2.31 million) due to its agreement with India’s Apollo Hospital regarding the operation and development of Indira Gandhi Memorial hospital (IGMH), signed in 2010 by the government of former President Mohamed Nasheed.

This was revealed in the Audit Report of the Ministry of Finance published by the Auditor General on Thursday.

The Audit Report states that Nasheed’s government later decided not to implement this agreement, and thus lost the advance payment made to Apollo hospital of $150,000 (MVR 2.3 million at today’s exchange rate).

The report states that this loss was incurred because former President Nasheed signed the agreement without prior research or planning, during an official visit to India.

The report further details that the agreement could not be implemented because it was not clear who would invest in IGMH, and because it also lacked details related to financing and implementation of the operations mentioned in the agreement.

The report also highlighted that the agreement was made in violation of the Regulation on Privatisation created under the Public Finance Act, and that the MVR 2.3 million mentioned earlier was given to Apollo Hospital without the approval of the parliament.

The Auditor General has advised to send these cases to the Anti-Corruption Commission (ACC) for investigation, and to reclaim the funds from those who are responsible. The Auditor General also advised to obtain legal advice prior to signing agreements on behalf of the State.