Legal Director of the main opposition Maldivian Democratic Party (MDP) Ahmed Mauroof, has written to the country’s national bank, Bank of Maldives (BML), urging to halt assistance to the government in transactions deemed illegal, and warning that the next MDP government will investigate the financing of 206 projects.

The letter, addressed to BML Chairperson Ahmed Ali Habeeb, emphasized that the Public Finance Act requires goods, services and supplies for the state to be procured through a fair, just and competitive bidding process. It notes that no government ministry has the authority to enact regulations allowing actions outside the framework of the law.

Mauroof’s correspondence asserted that the government has altered the Public Finance Regulations to create systemic opportunities for corruption, enabling projects to be awarded to preferred parties without public announcement or adherence to bidding procedures, in direct violation of the Public Finance Act.

Following these regulatory changes, agreements were signed on November 6 to hand over 206 projects to 53 companies, with financing reportedly provided by BML.

However, Mauroof highlighted that an examination of the companies and the proposed project implementation indicates that proceeding under the bank’s principles would not be feasible.

He stressed that projects and companies eligible for financing should be determined only after the bank conducts a full review, in accordance with its own principles and Maldives Monetary Authority (MMA) regulations, and concludes that the venture is feasible and in the bank’s best interest.

The government’s pre-determined prices and selection of companies, with expectations for BML to disburse funds, does not constitute an obligation for the bank.

Mauroof also raised concerns about the technical capabilities of the companies awarded these large construction projects, noting that several have no prior experience in construction.

This lack of expertise casts doubt on their ability to successfully complete the projects and financing them poses a high risk of significant financial loss for the bank.

In addition to this, he pointed out that, unlike standard practice, contractors were not required to provide any guarantees, such as bank, performance, or insurance guarantees. Without these safeguards, advance payments risk being unrecoverable, exposing the bank’s funds to a total loss and violating its principles.

Mauroof concluded that financing companies under these conditions would contravene banking laws, BML’s corporate financing principles and fundamental banking standards, arguing that this is inconsistent with the responsibilities of the nation’s largest bank safeguarding public funds.

The letter urged the bank to cease assisting the government in these alleged illegal transactions and warns that the incoming government will investigate the matter and take legal action against all individuals involved.