Maldives Gas "lost" MVR 4 million payment to Dubai company

The suspicious transaction occurred in October but “there has been no success in the matter of recovering the money,” Nazim said as the oversight committee discussed an ongoing inquiry into procurement practices at state-owned companies. 

Maldives Gas made advance payment without seeking a security guarantee as required by the Privatisation and Corporatisation Board’s procurement policy.

“We need to look into whether the procurement matters of companies are in accordance with the rules set by PCB,” the deputy speaker said.

Nazim did not specify the amount but the payment was US$ 240,000, according to media reports.  

After reviewing the case, the State Trading Organisation has since taken over responsibility for fuel purchases from Maldives Gas, a subsidiary company under the STO Group. The change was prompted by the apparent negligence in making the 30 percent advance payment, Nazim told Mihaaru later in the day.

Abdulla Mohamed, managing director of Maldives Gas, failed to take corrective action and recover the funds when STO offered the opportunity. He could not explain the reason for changing the previous supplier and engaging the Dubai company either, according to Nazim, a senior member of the ruling People’s National Congress. 

An Anti-Corruption Commission probe is underway into the suspected graft, the watchdog told the media after the scandal broke on Wednesday.