MRDC MD embroiled in corruption scandal

Anti-Corruption Commission (ACC) has requested for prosecution of Managing Director of Maldives Road Development Corporation (MRDC), Ibrahim Nazeem over suspicion he is responsible for over MVR 1 million in loss to state.

An official from Prosecutor General’s Office informed “Sun” on Monday that the office was researching the case.

The case involves Raise Crown Production which was contracted to supply 500 tons of cement to MRDC. ACC probe shows there was no corruption involved in the decision, which was made by MRDC directors’ board.

Things look less clean as ACC probe uncovers that Raise Crown Production was given the full payment for the work – MVR 10,058,340 - via a payment voucher in February, 2015 before the company supplied the cement to MRDC – which is not what was agreed upon.

The payment voucher was approved by MRDC MD Nazeem.

Findings from the ACC probe shows that MRDC directors’ board never made the decision to make the payment to Raise Crown Production in advance, and that the company supplied cement to MRDC 169 days later than they were contracted to.

Investigation also shows that MRDC directors’ board never made any decision to extend the time given for Raise Crown Production to supply the cement, despite request by the company for an extension.

Agreement between the two parties says that Raise Crown Production needs to pay MRDC 0.1 percent of total value of the project as liquidate damage for each day that passes beyond time period given for the company to supply the cement. And that the maximum amount in liquidate damage that can be taken was 10 percent of total value of project.

The case sent by ACC to PG Office says that MRDC had not received the MVR 1,005,834 – the maximum amount of liquidate damage - that needed to be paid by Raise Crowd Production to MRDC.

ACC has asked PG Office to prosecute Nazeem for using influence of his position for profiting a specific party, and for actions that prevent state from profiting.