Malé, Maldives – In a press release, the Attorney General’s Office stated that the Maldives Health Ministry has sent a termination notice to Dubai-based Executors General Trading on 2 May 2021 for inability to supply ventilators as per agreement.
The agreement made on 2 April 2020 state that the company is to supply the ventilators within 29 working days of advance payment. The agreement also states that if the company is unable to meet said requirements, the agreement can be terminated and the amount paid shall be reimbursed. The government has decided to go into arbitration if the company does not comply with their demands and refuses to issue compensation for damages due to agreement non compliance.
As per the agreement, any issues shall be settled through arbitration, in the Maldives, according to the laws of the country. The arbitration will be held at the Maldives International Arbitration center. The statement by AG office notes that the arbitrators registered at the center are experienced foreign arbitrators.
Since Executors General Trading is registered at the United Arab Emirates, the arbitration will be held according to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards as both countries are signees of the New York Convention.
While Maldives Ministry of Health has paid MVR 30.91 million to Dubai’s Executors General Trading LLC was contracted to supply 75 ventilators when the Covid-19 virus started spreading in the Maldives, only 15 ventilators had been supplied by them till date. From the 15 they had sent, 5 had missing parts which has not been accepted by the government.
Various attempts were made by the government of Maldives to attain the remaining ventilators but were unsuccessful.