The Auditor General’s Office (AGO) has revealed that the previous administration of President Abdulla Yameen paid USD1.9 million in compensation after terminating the Kulhudhuffushi Regional Hospital agreement with India-based Noorul Islam International Private Limited.
The government handed over the operations of Kulhudhuffushi Regional Hospital to Noorul Islam International in July 2017 for a period of 50 years. Under the agreement, the company was tasked with converting the hospital to a 150-bed multi-specialty tertiary hospital. However, the government re-transferred the operations to the Ministry of Health and terminated its agreement with the company in December 2017 due to the slow pace of progress and disagreements with stakeholders.
An assessment report published by the AGO show that Kulhudhuffushi Regional Hospital received 157 bills totalling USD124,000 during the period for goods and services procured by Noorul Islam International. The report notes that the settlement agreement between the health ministry and the company lacked clear allocation of responsibility for bill payments. It further states that the AGO believes that the health ministry should be responsible for paying any pending bills should the company refuse to do so. The report also recommends that future settlement agreements clearly define responsibilities for settling finances.