ACC launches corruption investigation into MP Shujau

The Anti-Corruption Commission (ACC) has stated that they have also launched an investigation into the cases mentioned in the report compiled by the Financial Intelligence Unit (FIU) of the central bank, Maldives Monetary Authority (MMA), which has pinned serious corruption allegations against Ibrahim Shujau, Member of Parliament for Baarah constituency.

While ACC has said they are investigating the case of large sums of money being deposited into companies associated with the lawmaker, the Maldives Police Service (MPS) has also been investigating the case. The police institution stated that they have been investigating the case since April. However, until now, the police have not disclosed the information. ACC also only revealed that they were investigating the case after the news made headlines.

ACC has stated that they are investigating the case on their own initiative. No further details were provided by ACC.

The leaked report contains transactions that occurred from 1 November 2022, to 10 January 2024. According to the report, ‘Quick Sure’, a company associated with Shujau, received more than MVR 10.5 million from the Malé City Council during Dr. Mohamed Muizzu's tenure as Mayor. The FIU report states that according to information available from Threshold Transaction Reports (TTRs), a total of MVR 10,545,232.60 in transactions occurred between a company called ‘Quick Sure’ and the Malé City Council from 2 November 2022, to 7 November 2023.

The report sheds light on details of said transactions, showing a total of 12 transactions between the company and the Malé City Council. Among these transactions, the smallest amount is MVR 265,000, while two transactions of MVR 2.3 million each are noted as the largest amounts.

This period coincides with the time when the current President Dr. Mohamed Muizzu was serving as the Mayor of Malé City. The report also mentions that during this period, Ibrahim Shujau, the brother of Mohamed Nafiz - the owner of Quick Sure, and the current lawmaker for Baarah constituency who is affiliated with the main ruling People’s National Congress (PNC), was working as a councilor for Hulhumalé in the Malé City Council.

In addition to this, the report includes transactions related to the inauguration ceremony of President Dr. Mohamed Muizzu held on 17 November 2023. The report suggests that the work for the incumbent president's inauguration ceremony, costing MVR 23.03 million, was awarded to SIFCO by misusing the law.

After MNDF-run SIFCO was awarded the project for MVR 23.03 million, SIFCO then subcontracted the project to three other parties, according to the report. These are Official Events Private Limited owned by Shujau; Quick Sure, owned by his cousin; and D.G. Holdings Private Limited. The report states that these parties are related and that their owners have connections with the current government and are considered to have political influence.

MMA’s report states that according to available information, Shujau played an important role in the transitional phase of the new government as the Managing Director of Official Events, especially in the 'Office of the President-elect'. It mentions that he actively participated in meetings with SIFCO and the People's Majlis Secretariat regarding the preparation of the president's inauguration ceremony. The report suggests that this resulted in significant financial gain for him. This raises suspicions of abuse of power, corruption, and unjust enrichment as stated in Article 151 of the Penal Code, according to the report.

The report details the substantial benefits received by Shujau, his close associates, and related companies from the work of preparing the inauguration ceremony for Muizzu.

According to the report, 67 percent or MVR 15,496,969.41 out of MVR 23,074,427.23 of the money sent by the Ministry of Finance to SIFCO for the project was transferred to Ibrahim Shujau's company - Official Events Private Limited, and his brother Mohamed Nafiz's business - Quick Sure.

The report also states that 60.87 percent or MVR 8,000,000.00 out of MVR 13,143,520.00 of the funds received by Official Events Private Limited from SIFCO was used by the company's shareholders, Shujau and Ahmed Adham, to purchase two luxury apartments.

14.46 percent or MVR 901,000.00 out of MVR 13,143,520.00 of the funds received by Official Events Private Limited was transferred to Shujau's personal account, which is believed to have been used for building his boat and other personal expenses, according to the report.

In addition to the work for the president's inauguration ceremony, Official Events Private Limited has reportedly received numerous large event management contracts from government agencies and state-owned companies, as stated in the report. It specifically mentions that many projects were awarded after the new government came to power. The report suspects that the company's owners have used political influence to secure work for the company. This is considered a case where companies have been misused to launder illegally obtained money, according to the report.