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Gov't urges investigation of payment to firm for police stations

Minister of Homeland Security and Technology Ali Ihusaan has announced that the Maldives Police Service (MPS) will launch an investigation into the whereabouts of the USD3.2 million allocated by the government to a joint venture involving two Indian companies, tasked with constructing 61 police stations across the Maldives. He made the statement while speaking at a press conference held by the team of the Ministry of Homeland Security and Technology.

During the press conference, Minister Ihusaan disclosed that the initiative to establish police stations on 61 islands was initiated by the previous administration. He recounted being questioned about the initiative by local councils during President Dr. Mohamed Muizzu's recent visit to the islands. As such, he conveyed the concerns raised by the homeland ministry on the issue.

Additionally, Minister Ihusaan revealed that India Projects and Developments, Indra Projects Private Limited, had shown interest in undertaking the USD41.18 million project to build the 61 police stations as of August 26, 2019. As such, he said that an agreement was signed between the previous government and the companies, stipulating that 85% of the project funding would come from the Exim Bank of India, with the remaining 15% sourced from the Maldivian government.

Furthermore, Minister Ihusaan unveiled details on the transformation of Indira Projects into a partnership known as ABL Indira Projects JV, registered in the Maldives on October 12, 2022. He, however, said that despite the absence of funds from the Exim Bank of India, the Maldivian government disbursed USD3.6 million to the company on March 7, 2023. He also said that no tangible progress was made in constructing the police stations, with Indra Projects notifying the Maldives on April 13, 2023, of the decision of the Exim Bank to withhold the loan.

Moreover, Minister Ihusaan disclosed that the Indian government pledged USD3.2 million in grant aid for the construction of the 61 police stations, with confirmation relayed to the Maldives by the Ministry of Finance and the MPS on August 13, 2023. He said that India urged the Maldivian government to use the grant funds to resume construction of the police stations.

Minister Ihusaan also expressed bewilderment over the sequence of financial transactions and the disappearance of funds. He declared that the MPS has been urged to probe the matter, particularly concerning the USD3.2 million channeled to an undisclosed company. He emphasised his commitment to exploring alternative avenues for the construction of these vital police stations.