Auditor General orders against paying fine to Dheebaajaa
The state has been ordered to pay MVR 34 million to the company
Chairman of Dheebaajaa Investments, Ibrahim Rasheed
Auditor General Hassan Ziyath has ordered the state against paying the MVR 348 million to Dheebaajaa Investments.
While the Civil Court ordered the state to pay the sum to the company, Supreme Court upheld this order in April 2019. The case was filed following the government’s decision to annul an agreement with Dheebaajaa.
The Ministry of Economics contracted Dheebaajaa Investments to provide ferry services to four atolls in the northern province, during former President Mohamed Nasheed’s administration in 2010. However, the agreement was annulled in 2013, during the presidency of Mohamed Waheed, over allegations of contractual violations.
A report published by the Auditor General’s Office on Thursday, noted that the agreement was annulled after the company failed to provide the services as agreed. Noting that the state had given Dheebaajaa time to restart the services as per the agreement, the report noted that the company failed to do this as well.
Further highlighting that the state has the authority to annul the agreement under the request for proposal signed, the Auditor General’s Office ordered the state against paying any compensation to the company.
While the company was awarded an island in Raa atoll “to subsidize services” under the agreement, the report said that the island was awarded under the condition that the state will take it back it in the situation the agreement is annulled.
If the island has been subleased, the Auditor General’s Office said that the state has the authority to reach an agreement with the company it was subleased to. As such, the report said that the state has since entered an agreement with this company.
While the state has been ordered to pay MVR 348 million to Dheebaajaa, the Attorney General’s Office had asked the Supreme Court to review the case in January this year. The court has agreed to hear the case, but is yet to hold a hearing.
Authorities had attempted to seek an out of court settlement, after agreeing to pay MVR 174 million. However, the state is yet to do so, and Dheebaajaa has filed another case at the Civil Court, due to the delay in enforcing the court ruling.
