In a startling revelation during the Parliament’s Public Accounts Committee meeting, Deputy Speaker Ahmed Nazim disclosed that Maldive Gas, a subsidiary of the State Trading Organization (STO), has “lost” an advance payment of $240,000 (approximately 3.7 million Maldivian Rufiyaa) made to a Dubai-based company for a gas shipment that never materialized. Efforts to recover the funds have so far been unsuccessful.
Unjustified Procurement Decisions Raise Eyebrows
Nazim highlighted that in October of the previous year, Maldive Gas inexplicably altered its regular supplier, opting instead for a Dubai firm to procure liquefied petroleum gas (LPG). An advance payment of 30% was made for the shipment, which was neither delivered nor refunded. The rationale behind this supplier change remains unclear, and Managing Director Abdulla Mohamed has yet to provide a satisfactory explanation.
STO Intervenes to Restore Accountability
In response to this financial misstep, STO has assumed full control over gas procurement operations from Maldive Gas. Nazim emphasized that this strategic move aims to prevent future occurrences of such negligence and to ensure that procurement policies are strictly adhered to. All future gas orders will now be managed directly by STO, reinforcing the government’s commitment to safeguarding public funds.
A Troubling Pattern of Financial Irregularities
This incident is not an isolated one for Maldive Gas. The company has previously been embroiled in controversies, including a case where Deputy Managing Director Ikram Ali was accused of involvement in a fraudulent procurement of oxygen cylinders worth MVR 16 million during the COVID-19 pandemic. Moreover, former Managing Director Abdulla Maumoon faced seven charges of bribery related to transactions during his tenure from 2013 to 2018. Investigations revealed that Maumoon allegedly accepted bribes totaling approximately $298,403.50 from 3DH International, a supplier to Maldive Gas, with funds reportedly transferred to accounts linked to him and his family members. Upon his return to the Maldives in August 2024 after years abroad, Maumoon was subjected to a travel ban as authorities resumed their investigations into these allegations.
Government’s Firm Stance on Financial Discipline
The administration under President Dr. Mohamed Muizzu has demonstrated a proactive approach to addressing financial mismanagement within state-owned enterprises. By transferring procurement responsibilities to STO, the government is taking decisive action to enhance accountability and transparency, reflecting its unwavering commitment to prudent financial governance.
Parliamentary Oversight to Ensure Compliance
The Public Accounts Committee has pledged to conduct a thorough investigation into the matter, scrutinizing the actions of Maldive Gas executives. Nazim stressed the importance of aligning company procurement policies with Privatization and Corporatization Board (PCB) regulations to prevent such lapses in the future. This initiative is part of a broader effort to curb unnecessary expenditures and reinforce fiscal responsibility across state-owned entities.
This development serves as a stark reminder of the critical need for transparency and accountability in managing public resources. The government’s swift intervention reflects its dedication to upholding the public trust and ensuring that such financial oversights are addressed with the seriousness they warrant.
