Ventilator corruption: Fraud charges sought against Dubai company

Parliament’s Deputy Speaker Ahmed Nazim states a criminal investigation has been requested against Dubai-based Executors General Trading, the company contracted by the government to procure ventilators to treat COVID-19 patients in critical condition which failed to deliver them.

Maldives’ Health Ministry and Executors General Trading executed an MVR 34.50 million contract on April 2, 2020, for the procurement of 75 ventilators during the COVID-19 pandemic.

Executors General Trading only delivered 15 ventilators, and while Health Ministry paid MVR 30.91 million, which made for 90 percent of the total payment, to the company as an advance, without obtaining an advance guarantee or a performance guarantee.

Speaking at Parliament’s Public Finance Committee on Monday, Deputy Speaker Ahmed Nazim—who also represents the Dhiggaru constituency—criticized the Anti-Corruption Commission (ACC) for its continued failure to press charges against those implicated in the case. He noted that the latest update received on the issue was that the Prosecutor General’s Office had instructed the ACC to pursue the investigation from a different angle.

As such, he said a request has been filed with Maldives Police Service to conduct a fraud investigation over the non-deliverance of ventilators following payment by the government. He emphasized that it was obvious that the funds cannot be recovered through civil means such as arbitration.

Notably, efforts have been made to recover the funds via arbitration. In this regard, Maldives International Arbitration Centre (MIAC) instructed Executors General Trading to pay USD 2.1 million (MVR 34.5 million) to the Maldivian government in the case in February of last year along with interest payments and arbitration fees.

MIAC concluded that Executors should pay USD 1.8 million for the ventilators that were not delivered – subject to two percent interest per year till the payment is settled. The said interest will be counted from May 2, 2021, onwards as per the ruling.

Additionally, the company has also been instructed to pay USD 223,750 in liquidated damages. The amount is also subject to a two percent interest per year till the payment is settled – from the date the liquidated damages was awarded.

ACC has sought charges in the case on five previous occasions. However, PG has sent back the case all five times, citing failure to meet the necessary requirements.  

Back then. Charges had been sought against former Health Minister Abdulla Ameen and 10 other Health Ministry staff. With the case sent back, ACC has filed the cases against eight individuals including Ameen.