Projects carried out by Yameen administration were cost-effective: ex-economic minister Saeed

The outgoing administration had always sought the most cost-effective and lowest possible prices when funding its projects, says former economic minister Mohamed Saeed.

Saeed’s comments come while newly appointed foreign minister Abdulla Shahid has said that loans to fund development projects by the previous government was taken out at commercial rates and this unnecessary expense has indebted the state.

Saeed said that loans acquired by former president Abdulla Yameen were not at ‘commercial rates’ but as low as possible and that they had ensured means to pay them back.

The former minister said that the current government attempting to ‘distort’ the reality of the situation and mislead the public is irresponsible.

While Saeed insists as such, audits and financial records reveal otherwise; projects such as the Sinamalé Bridge – linking capital city Malé to Hulhulé island and the 25-storey ‘Dharumavantha Hospital’ are two notable projects that contradict his statement.

The project to construct the ‘Dharumavantha Hospital’, the tallest building in the capital city, was given to a proposal of USD 142 million, while other contractors had proposed much lower prices, with some as low as USD 53 million.

The Yameen administration had signed off on paying USD 210 million to construct the Sinamalé Bridge, and though 126 million used for the project was aid provided by the Chinese government, financial experts say that several bridges with the quality of the one that was built could have been constructed for the amount spent.

The transition committee formed by the Joint Opposition ahead of President Ibrahim Solih taking office had found that the state has to spend MVR 4.8 million on paying off loans acquired by the Yameen administration.