SOE committee approves to set Maldive Gas procurement procedure to"direct purchase"

Parliament’s Committee on State Owned Enterprises (SOE) has passed to set Maldive Gas’s procurement procedure under “direct purchase”, after the company came under fire for violating procedure when purchasing Liquefied Petroleum Gas (LPG).

Members who took part in the committee meeting on Tuesday evening unanimously voted to order the company to follow the procedure of purchasing directly through the company instead of doing it through a third party.

If the procedure is passed, MVR 20 will be deducted from each cylinder of gas, noted the committee.

Anti-Corruption Commission (ACC) had launched investigations into the company for violating its procurement procedure in August, after receiving a case of Maldive Gas buying products abroad, with inflated prices.

In a letter to the Parliament Speaker in August, the company’s Managing Director Shazail Shiyam wrote that since its inception, the company has followed the procurement policy to seek suppliers.

It further stresses on the difficulties the company faces in finding a good contract as a spot contract is required to procure products through direct purchase. Noting that their minimum order is set at 2,000 metric tons although the capacity of Maldives is set at 1,000 metric tons, which resulted in an increased price in supplying gas, the company gave its assurance that they have not violated the code of practice within the past eight months.

Earlier, Shazail had stated that gas is never available at the same rate and they have been purchasing products at market price after having denied violating procedure.

The committee also approved to summon senior officials of Maldive Gas to the committee. However, they are yet to reveal a date.

Maldive Gas came under fire after receipts of its purchases were shared on social media platforms which shows that it had purchased 3,000 gas cylinders from 3DH International at different prices.

During the management of Abdulla Maumoon, Maldive Gas finances had been used to build a mosque near Rehendhi School during the previous administration of Abdulla Yameen. MVR 2.5 million was used to build the mosque as a memorial for then-First Lady Fathmath Ibrahim’s parents.