The Maldives International Arbitration Centre (MIAC) has mandated the Ministry of Health and Dubai-based Executors General Trading to compensate the government USD2.1 million for breaching a contract to procure ventilators crucial for treating COVID-19 patients in critical condition.
In its conclusive ruling on the breach of contract by Executors General Trading, MIAC awarded USD1.88 million for the undelivered ventilators, along with a 2% interest rate accruing from May 2, 2021, as stated by the Attorney General’s Office (AGO). In addition, Executors General Trading has been instructed to pay USD223,750 in Liquidated Damages, with a 2% interest rate from the date of the award until settlement.
Notably, Executors General Trading abstained from participating in any arbitration hearings, failing to cover the arbitration costs. As such , the government, having shouldered all expenses, has petitioned the arbitration to retrieve the funds.
The AGO stated that the final decision of MIAC requires Executors General Trading to disburse USD132,865.56 in arbitration fees plus a 2% annual interest rate until full payment. The AGO affirms the enforceability of the outcome and pledges of the MIACC to pursue the specified monetary recovery.
Furthermore, the AGO underscores the severe ramifications of the agreement with Executors General Trading on the state, citing findings from audits and investigations by the Anti-Corruption Corporation (ACC). These investigations reveal that the previous government awarded the ventilator procurement contract to Executors General Trading without securing a bank guarantee.