Audit Report throws light on corruption in Kumundhoo Harbor Project

Auditor General’s Report on Kumundhoo Harbor Project has stated that the project was contracted to Heavy Load Maldives, a company owned partly by Moosa “Reeko” Manik, Chairperson of the ruling Maldivian Democratic Party, without a bid. The Report also said that Heavy Load was paid an additional 11.9 million Rufiyaa for a project whose contract value was 10.3 million Rufiyaa. In addition, Heavy Load was obliged by the contract to complete the project within 6 months, although it was completed in 2 years and 7 months.

Auditor General’s Report said that the money paid for the periods during which there was no work should be reimbursed.

Auditor General Niyaz Ibrahim submitted the Report to the Financial Affairs Committee of the People’s Majlis yesterday. The Report was prepared after the Financial Affairs Committee requested the Auditor General to look into the matter of contracting the project to Heavy Load Maldives in the first place.

The Report said that Heavy Load Maldives had failed to comply with the terms of the contract. It also said that changing the schedule for the project and delaying the work in this case was deliberate and that it was corruption. The Report also said that Heavy Load was given the contract against the Act on State Finance after some mutual discussions between the government and the company.

The project was given to Heavy Load in November 2007. The 20-page report contains further details of the financial transactions conducted in relation to the project, which strongly suggest corruption.