The Government of the Maldives has decided to terminate the contract signed with Dubai’s Executors General Trading to procure ventilators to the Maldives.
A press statement released by the Attorney General’s Office on May 4 revealed the contract signed between Ministry of Health and Executors General Trading clearly states the contract can be terminated if the supplier fails to deliver the materials as specified in the contract. Therefore, the AG Office said a contract termination notice has been sent to the company on May 2 to begin proceedings of termination.
The AG Office further noted the contract states the supplier is required to provide a refund if it cannot supply the materials within the contracted duration. Therefore, the AG Office stated the government has decided to seek international arbitration if the company fails to compensate accordingly.
The government had announced its decision to seek arbitration in the case on March 31. Speaking at a press conference, Spokesperson at the President’s Office Mohamed Mabrook Azeez revealed the contract signed with the Dubai company states international arbitration can be sought as per the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL). He said the arbitration will be carried out in the Maldives and will involve the Government of the UAE as both countries are parties to the New York Convention.
The COVID-19 compliance audit conducted on the health ministry by the Auditor General’s Office last year revealed Executors General Trading was paid 90% of the quoted price in advance to procure 75 ventilators in April 2020, of which only 15 have been 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.