Police probe sought in MVR 44m advance to ex-MP Ali Hameed’s company

The Parliament’s Public Accounts Committee decided on Tuesday to ask the police for a criminal investigation into the payment of MVR 44 million as an advance to North Coast Contractors – a company owned Ali Hameed, the former parliamentary representative for Isdhoo constituency.

The decision followed a letter sent to the committee by Aasandha Company – the state health insurance agency.

In September 2016, Aasandha awarded North Coast an MVR 61 million project to build a six-story hospital in 15 months. The estimated profit margin for the project was three percent, meaning the company stood to earn MVR 18.3 million as profit from the project.

However, physical works on the project never commenced, and in June 2017, Aasandha instructed for the project to be put on hold citing budgetary constraints. North Coast claimed the decision resulted in losses for the company, and it was awarded a project to build an office building as part of a settlement agreement.

North Coast was paid MVR 44 million as an advance for the new project.

However, physical works of the project never commenced. According to Aasandha, North Coast refused to provide details of how the advance money was spent despite repeated requests.

Aasandha asked the Public Accounts Committee for an inquiry into the case.

ރައްޔިތުންގެ މަޖިލީހުގެ މާލިއްޔަތު ކޮމިޓީއަށް ލިބިފައިވާ މައްސަލަތައް ދިރާސާކުރުން pic.twitter.com/pbivA7HGfJ

— People's Majlis (@mvpeoplesmajlis) October 29, 2024

During a committee meeting on Tuesday, the members of the committee noted that there was no paperwork to show the company ever placed orders to procure the equipment needed for the project.

Many of the members described it as a “scam.”

Deputy Speaker Ahmed Nazim submitted a motion seeking to report the case to the police for a criminal investigation. The motion was seconded by Central Hithadhoo MP Ahmed Azan and Eydhafushi MP Ahmed Saleem (Redwave Saleem), and passed with the vote of seven members.

Ali Hameed told Sun that he received a letter from the Public Accounts Committee regarding the project, and had provided all information they asked for.

He does not believe the committee’s decision was based on credible information.

“The Public Accounts Committee did not engage in any further communications with us regarding this. They made this decision on their own without seeking the information they need from us,” he said.

Ali Hameed said North Coast will be sending a letter to the Parliament this week regarding the issue. He said that agreements between no companies are not matters that parliamentary committees should interfere in.

Ali Hameed got elected to the Parliament in 2019 on a Jumhoory Party (JP) ticket, but defected to the then-ruling Maldivian Democratic Party (MDP) in April last year.