The Auditor General’s Office report has revealed that the Maldives government paid Indian firm Noor Islamic International Private Limited (NII) a total of MVR 29 million (USD 1.8 million) after the agreement with the company was terminated by the state.
NII was contracted to manage HDh. Kulhudhuffushi’s regional hospital during former President Abdulla Yameen’s administration in 2017. The company was contracted to manage Kulhudhuffushi Regional Hospital (KRH) for a period of 50 years.
The AGO’s report detailing the bills NII had sent while managing the hospital showed that the current President Ibrahim Mohamed Solih led administration terminated the contract on 27th October 2019.
The Ministry of Health repaid the company in November and December 2019.
The contract was terminated after two of the company’s shareholders, Faisal Khan and Ali Usaid became embattled in a dispute and the hospital could not operate according to the agreement.
The AGO’s report also showed that NII sent bills to a total of 157 parties while they managed KRH. According to the bills, the money spent amounts to MVR1.9 million, while KRH has not paid MVR1.7 million of this amount back suppliers.
Moreover, AGO identified that when the settlement agreement was drafted between Maldives government and NII, the agreement did not articulate how the money spent by NII will be repaid to them.
Since NII is now no longer legally responsible for managing KRH, repayment of bills the hospital owed to other third-parties fell on the Ministry of Health.
AGO has cautioned to include provisions in future settlement agreements to determine the liable party to pay any outstanding bills if and when it exists close to a contract termination.
