The Shujau files: how inauguration funds became luxury apartments

The Financial Intelligence Unit documented suspected misappropriation.

Artwork: Dosain

05 Aug, 9:35 PM

When 67 percent of the MVR 23 million (US$ 1.5 million) budget flowed to companies owned by ruling party vice president Ibrahim Shujau and his cousin, President Dr Mohamed Muizzu's inauguration ceremony on November 17, 2023 raised red flags at the central bank's Financial Intelligence Unit, which documented suspected misappropriation and conversion of public funds into luxury apartments and personal wealth.

The broke last Saturday when the anonymous X account Hassan Kurusee – a provocative outlet for whistleblowers that in July after a two-month suspension – an FIU report implicating Shujau, MP for Baarah and deputy leader of the People's National Congress supermajority in parliament, in alleged money laundering and illicit enrichment.

A day after the leak, FIU head Abdulla Ashraf was removed from his post, even as both the police and Anti-Corruption Commission told the press that investigations were underway. The 24-page confidential report dated March 28, 2024 was based on extensive banking records cross-referenced with government documents and customer declarations.

Shujau, however, denied any wrongdoing. But he has since been stripped of his assignments at the powerful public accounts and state-owned enterprises oversight committees.

In a lengthy social media , Shujau said he couldn't determine whether the leaked report was authentic. "I cannot say whether what is circulating is real or fake, because I have not received any information about this matter from any official authority," he wrote.

Rather than directly address the specific allegations, Shujau defended his company's record. The contracts had been awarded based on "experience and work quality standards" of projects completed under three administrations, he insisted, claiming a right to engage in business "whether as a member of parliament or like any other Maldivian citizen."

Preparations for the inauguration ceremony.

The scheme

The finance ministry enlisted the military's welfare company SIWEC to prepare Malé's Republic Square for Muizzu's swearing-in ceremony, invoking the "emergency" single-source procurement exception in public finance regulations to bypass mandatory competitive bidding for projects over MVR 5 million.

SIWEC subcontracted the work to three private companies: Official Events, a company partially owned by Shujau; Quick Sure, a sole proprietorship owned by Mohamed Nafiz, Shujau's cousin and a deputy minister; and DG Holdings, a construction company blacklisted by the tax authority for non-payment.

"Based on the available data it can be inferred that funds received to SIWEC for this project were possibly misappropriated under the authority of certain senior officials of SIWEC," the FIU report concluded.

At the time, Shujau was a member of the "Office of the President-elect" that oversaw the transition. He led meetings with SIWEC and the parliament secretariat about the inauguration ceremony, "which ultimately resulted in substantial financial gain for the individual," the report observed.

"This indicates possible misuse of authority, corruption and illicit enrichment (section 151 of the penal code)."

Muizzu and Shujau at the inauguration rehearsal.

The money trail

Aside from Shujau's Official Events, SIWEC also paid MVR 4.2 million to DG Holdings and MVR 2.3 million to Quick Sure, whose invoice included site preparation, "surrounding decor" and event branding (4,000 small pin badges, 5,000 big pin badges and 4,000 goodie bags).

According to the flagged transactions, a day after SIWEC completed the MVR 13.1 million payment to Official Events on December 11, 2023, Shujau's company paid MVR 8 million as commitment fees for two "RainPearl Residence" apartments for its two shareholders: Shujau and Ahmed Adham, who worked at the state broadcaster. Since penthouse units at the complex were less expensive, the report questioned the price of MVR 20 million each for the luxury apartments, which were under development in Hulhumalé by Rainbow Construction.

Official Events also transferred MVR 1.9 million to Shujau's personal bank account between December 11 and 17. He withdrew MVR 90,000 in cash and spent more than MVR 22,500 on POS purchases. A further MVR 75,000 was transferred to his cousin Nafiz, who also withdrew the funds in physical cash. Shujau also made a partial payment of MVR 669,000 for a boat under construction by Viking Enterprises.

Nafiz meanwhile bought US$ 4,700 at the black market rate of MVR 18.15 per dollar from Aqsa Line Investments Pvt Ltd. A similar transaction of MVR 77,300 was done with Ataraxia Pvt Ltd, "a company that is allegedly involved in black market foreign currency exchange and associated with the organised crime group 'Kudahenveiru,'" according to the FIU. Official Events also conducted transactions worth more than MVR 145,000 with Aqsa and Ataraxia.

The FIU analysis suspected a money laundering operation that systematically diverted and obscured the flow of public funds. An assessment of subsequent transactions after the SIWEC payments showed how accounts across the network functioned as temporary waypoints designed to break the electronic trail.

According to the analysis, "entities and individual's accounts had been used as a funnel account on several occasions, notably receiving credits in the form of cash or transfers which are subsequently debited from the accounts within a short period of time through transfers or ATM cash withdrawals."

The report identified the involvement of the national security apparatus. Wais Waheed, a board director of SIWEC and the director general of the National Counter-Terrorism Centre, paid MVR 180,000 to DG Holdings in late November 2023. The payments were made shortly after the company received SIWEC funds.

Official Events' previous managing director and shareholder was Ibrahim Shafaz Abdul Razzaq, an , who transferred his 50 percent stake to Shujau in October 2017.

DG employees at the site.

Post-election windfall

Following Muizzu's inauguration, Shujau – who won his old Baarah seat in the April 2024 parliamentary elections and became one of the loudest defenders of the PNC government – went on to secure numerous event management contracts, including projects worth MVR 9.8 million from the finance ministry between January 2023 and January 2024.

Waste Management Corporation (WAMCO): MVR 1,043,982 (two transactions, December 26, 2023 - February 15, 2024) •

Maldives Airports Company Limited (MACL): MVR 1,296,000 (single transaction, January 24, 2024)

Housing Development Corporation (HDC): MVR 3,767,040 (four transactions, March 29 - December 28, 2023)

State Electric Company (STELCO): MVR 497,600 (two transactions, July 9-17, 2023)

The FIU was unable to establish the purpose of these transactions due to limited supporting documents.

When Shujau represented the Hulhumalé constituency in the Malé City Council prior to the change of government, Quick Sure earned MVR 10.5 million from the council between November 2, 2022 to November 7, 2023. Combined with the inauguration and Malé City Council projects, Official Events and Quick Sure received approximately MVR 40 million in government contracts.

"This suggests that Ibrahim Shujau may have leveraged his political influence to gain preferential treatment for his company and related other entities, directing towards potential misuse of corporate vehicles for laundering funds possibly acquired through illicit means," the report concluded.

"The involvement of government officials (including national security officials), former Member of Parliament, a high risk (OR) close associate of PEPS [Politically Exposed Persons] as well as the apparent layering of the transactions indicate that these transactions and entities must be further investigated. The layering of transactions is also an indicator of disguising the true legal and economic purpose of transactions, often intended to hide the source of funds and create a complex paper trail, hence, the intended purpose of certain transactions is questionable."

Official Events' payments to other event management companies:

Event Planners Private Limited: MVR 902,100 (3 transactions, November 21-22, 2023)

Unica Pvt Ltd: MVR 102,000 (December 12, 2023)

Uber Events and Artists Pvt Ltd: MVR 141,000 (December 12, 2023)

Integral Events Pvt Ltd: MVR 32,400 (December 12, 2023)

High Rise Pvt Ltd: MVR 21,600 (November 15, 2023)

Hub Company Pvt Ltd: MVR 3,549 (November 15, 2023)

The Big Pvt Ltd: MVR 3,649.53 (November 19 - December 24, 2023)

Payments to Shujau's family members:

Ali Janah (Shujau's sibling and deputy minister of foreign affairs): MVR 124,932 (three transactions, November 16 - December 24, 2023)

Shajah Firaaq (deputy minister of education): MVR 10,080 (two transactions, December 19, 2023)

Other payments:

Mohamed Afzal (sibling of Ahmed Afzal Ibrahim, state minister for cities, local government and public works): MVR 500,220 (four transactions, November 15 - December 19, 2023)

Mohamed Nafiz (Shujau's cousin and deputy minister): MVR 143,851.09 (12 transactions, November 15 - December 21, 2023)

Ahmed Adham (co-owner): MVR 140,983 (25 transactions, November 14 - December 25, 2023)

Ali Ash Hab (Ahmed Adham's younger brother): MVR 109,000 (2 transactions, November 13 and December 24, 2023)

Kalam (Bangladeshi lighting technician): MVR 127,544.10 (25 transactions, November 14 - December 25, 2023).

DG Holdings transactions:

MVR 1,180,000 in physical cash withdrawals (four transactions, November 14 - December 13, 2023)

Ataraxia Pvt Ltd: MVR 746,541 (four transactions, December 12-14, 2023)

Official Events: MVR 600,000 (two transactions, December 11, 2023)

Ahmed Adham: MVR 100,000 (December 12, 2023)

Ismail Ali (light mechanic at Official Events): MVR 200,000 (December 12, 2023)

Mariyam Hidhaya (spouse of Ahmed Faroog, DG Holdings shareholder): MVR 69,506 (10 transactions, November 15 - December 17, 2023)

Ahmed Nasheed (DG Holdings shareholder): MVR 195,552.15 (six transactions, November 15 - December 14, 2023)

Quick Sure transactions:

Mohamed Nafiz personal accounts: MVR 783,850 (50 transactions, November 14 - December 31, 2023)

Aqsa Line Investments Pvt Ltd: MVR 300,000 (two transactions, December 11-19, 2023)

Official Events Pvt Ltd: MVR 267,600 (two transactions, November 14 - December 11, 2023)

Ahmed Adham: MVR 240,020 (two transactions, December 5-12, 2023)

Ataraxia Pvt Ltd: MVR 200,000 (December 20, 2023)

Ali Janah: MVR 192,583.67 (four transactions, November 20 - December 24, 2023)

Aminath Sahuneeza (possibly spouse of Mohamed Nafiz): MVR 67,200 (three transactions, November 20 - December 19, 2023)

Total network beneficiaries (aggregate amounts):

Ataraxia Pvt Ltd: MVR 1,070,439 (from Official Events, DG Holdings, Quick Sure, and Ibrahim Shujau)

Mohamed Nafiz: MVR 982,701.09 (from Official Events, Quick Sure, and Ibrahim Shujau)

Ahmed Adham: MVR 480,983 (from Official Events, DG Holdings, and Quick Sure)

Aqsa Line Investments Pvt Ltd: MVR 485,305 (from Official Events, Quick Sure, and Ibrahim Shujau)

Ali Janah: MVR 322,515.67 (from Official Events, Quick Sure, and Ibrahim Shujau).

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The Shujau files: how inauguration funds became luxury apartments

The scheme

The money trail

Post-election windfall

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