State settles MVR26m over MRDC liquidation

Source: Sun Online

The liquidation of Maldives Road Development Corporation, and the corporation’s closing down resulted in Maldives state paying MVR26.1 million to contractors the now defunct corporate owed.

The revelation was made during Tuesday’s parliamentary session, where the Maldives Minister of Finance was summoned for inquiring.

Minister of Finance Mr Ibrahim Ameer noted that the now non-functional corporation was going through the process of liquidation, adding that under the previous administration state had assigned several projects through MRDC for which third-party contractors are owed their cost of work.

In his justification, Mr Ameer clarified that these outstanding payments must be settled with the contractors.

The Maldives Minister of Finance bemoaned over the unprofessional conduct of business during the previous administration, claiming that several contractors were owed money from the Maldives state for the work they have since completed.

These include MVR280 million to be settled with Nexbiz, as ruled by the Singapore’s arbitration court over the termination of contract between the company and state in 2013, which was initially agreed upon back in 2010 for the installation of a border control system in Maldives.

Another case involving a dispute between Villa Group founder Qasim Ibrahim and corporation called WLT resulted in state settling MVR130 million with the latter. In addition to this the Maldives Supreme Court recently ruled on state to settle MVR7.1 million with another corporate entity over an unpaid payment.

State also fell short in accumulating money over the exemption of MVR15.2 million in loan returns from several individual parties, to whom they were issued following the 2004 tsunami crisis.

The termination of agreement with Noomadi Resorts and Residences by Maldives state, which initially meant construction of housing flats, also resulted in the latter paying an undisclosed sum as the settlement to the agreement.

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