The Maldives is seeking USD2 million in compensation over the failed procurement of ventilators during the COVID-19 outbreak.
In a press statement, Attorney General’s Office (AGO) stated that it submitted the case at the Maldives International Arbitration Centre against Dubai-based Executors General Trading on February 16. The state is seeking USD2 million in compensation for damages in addition to interest incurred and covering the cost of the arbitration process.
In 2020, the AGO found irregularities in procuring ventilators for the Maldives in the COVID-19 compliance audit conducted on Ministry of Health. The audit revealed that Executors General Trading was paid 90% of the quoted price in advance to procure 75 ventilators in April 2020, of which only 15 were procured. The audit report also revealed the company was selected without assessing its financial and technical capabilities, in addition to not obtaining advance payment and performance guarantees.
The health ministry requested arbitration after the Dubai-based company failed to respond to repeated requests to return the amount paid by the government of the Maldives, which amounts to USD2 million. The government had also refused to use the 15 procured ventilators, as they did not meet the agreed upon specifications.
Anti-Corruption Commission (ACC) has submitted corruption charges against officials at the health ministry who were allegedly involved in the failed procurement of ventilators during the COVID-19 outbreak. The commission requested that they be charged with taking action that goes against the interest of the state under Article 13 of the Anti-Corruption Act and that measures be taken to recover the USD2 million in state funds lost due to the incident.