MDP to submit corruption case to ACC over projects awarded to politically linked companies

The main opposition Maldivian Democratic Party (MDP) has decided to file a case with the Anti-Corruption Commission (ACC) on Monday, alleging corruption in the awarding of government projects to companies linked to parliamentarians and individuals connected to the administration. The decision was endorsed by the MDP National Congress during its latest session.

According to the resolution, the case will be officially submitted to the ACC at 11am on Monday. The party’s legal team is currently finalizing preparations for the submission.

The resolution, introduced by former MP for Hoarafushi constituency and constituency president Ahmed Saleem, raises serious concerns about the government’s recent amendment to the Public Finance Regulations. The changes allow ministers to directly award projects to any party of their choosing, bypassing competitive bidding and evaluation processes.

Under the amended rules, ministers can allocate up to 15 percent of a project’s funds without requiring performance guarantees or advance payment guarantees. The regulation also removes the need to assess a company’s technical or financial capacity before awarding a contract.

MDP revealed that these amendments were made in violation of the Public Finance Act and the Constitution of the Republic of Maldives, facilitating the allocation of projects at inflated prices to politically connected entities. The resolution highlights multiple instances where projects were awarded without public announcements, to companies not registered as contractors and even to firms on the verge of dissolution. In several cases, similar types of projects were reportedly awarded at widely varying prices, raising further suspicion of irregularity.

The resolution argues that the agreements established under these circumstances are legally invalid. It calls on the government and the companies involved to nullify the contracts and demands that the courts annul the recent regulatory amendments. It also urges immediate suspension of funding for the disputed projects.

In addition to this, the resolution notes that these projects are being financed through loans from the Bank of Maldives (BML) with government assurances, carrying a nine percent interest rate. MDP has called for action against BML executives for their role in facilitating these arrangements.

The party further resolved that a future MDP government must investigate these cases, take legal action against those responsible, and remove from public office any officials who fail to act against such corruption.

The resolution was unanimously approved by members who attended Saturday’s National Congress session.