Minister of Finance Ibrahim Ameer has stated the government will be seeking a refund from Executors General Trading of Dubai, UAE, if the company cannot supply the ventilators as specified in the contract.
Speaking at the Parliamentary Committee on Public Accounts regarding the findings of the COVID-19 compliance audit conducted on the Ministry of Health, the finance minister said the contract awarded to Executors General Trading to supply 75 ventilators to the Maldives is a running contract. Noting the health ministry is still working on procuring the ventilators, the minister said the government will seek a refund from the company if it cannot supply the ventilators.
Minister Ameer added the contract specifies the delay charges which can be imposed, and the process to be followed if arbitration is sought. He affirmed the government will take the necessary action to recover its lost expenses if the ventilators are not procured.
The minister further stated the finance ministry had acted in accordance with the Public Finance Regulations in issuing the advance payment for Executors General Trading. He said the finance ministry acted within its legal boundaries to facilitate the supply of health equipment required for the Maldives to fight the COVID-19 pandemic.
The COVID-19 compliance audit of the health ministry revealed Executors General Trading was paid 90% of the quoted price in advance to procure 75 ventilators in April, although no ventilators have been procured despite four months having passed since signing the contract. 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 report further highlighted the price quoted by Executors General Trading was higher compared to other parties which submitted quotes. It also noted there was no official communication with World Health Organisation (WHO) on procuring the ventilators through Executor General Trading, despite the ministry claiming the company was recommended by WHO.
Following the findings of the audit report, the parliament has launched an inquiry into the matter. Meanwhile, Minister of Health Abdulla Ameen has stepped aside from his duties as minister until the end of the investigation.