The Malé Water and Sewerage Company (MWSC), a state-owned enterprise, has terminated an agreement regarding accommodation arrangements for the foreign employees of its subsidiary, Island Beverages Maldives (IBM). The decision comes in response to complaints about the process of finalizing the agreement, according to Managing Director Abdul Matheen Mohamed.
Internal Complaints Prompt Immediate Action
Matheen revealed that the MWSC board received internal complaints about the agreement last month, long before the issue gained public attention through social media. Acting on these concerns, the board directed IBM to cancel the agreement on December 18.
“When we received the complaint, we audited the process. Whenever concerns arise, it is essential to conduct a review. Our findings showed areas that required improvement and procedural issues. After assessing the pricing and other factors, we concluded that re-announcing the agreement was the best course of action,” Matheen explained.
Audit Committee’s Findings
MWSC’s audit committee reviewed the matter and recommended canceling the agreement. Matheen emphasized that any negligence by employees would also be investigated thoroughly.
“The board decided to adhere to the audit committee’s advice. On December 18, IBM was officially notified to terminate the agreement,” he stated.
Concerns Over Alleged Corruption
Allegations of irregularities in agreements to lease a two-story building for IBM’s foreign employees and storage space surfaced recently. Copies of the agreements were leaked online, raising public scrutiny.
The agreements were reportedly signed with a company identified as Tele Maldives without conducting a competitive tender process.
Key Details of the Agreements
The first agreement, signed on August 27, stipulated a monthly rent of MVR 60,000. However, this agreement was later canceled, and a second agreement was signed on October 22, increasing the rent to MVR 200,000 per month—an additional MVR 140,000. The revised agreement included both accommodation and storage facilities.
The five-year agreement required an advance payment of MVR 400,000, with IBM Managing Director Mohammed Jinan Jaleel signing on behalf of the company.
Calls for Greater Transparency
The incident has sparked calls for increased transparency and accountability in public companies. Questions remain about why the agreements bypassed a tender process, which could have ensured competitive pricing and fairness.
Matheen assured that MWSC would address any lapses and take corrective measures where necessary.
