ACC sends cases against Nimal and 3 others for prosecution

Former Managing Director of state-run Fenaka Corporation, Mohamed Nimal. | Photo: Maldives Times

Malé, Maldives – Anti-Corruption Commission (ACC) has forwarded the case against former FENAKA Managing Director Mohammed Nimal for allegedly paying contractors without deducting liquidated damages to the Prosecutor General’s Office (PGO) seeking prosecution.

Besides Nimal, four others who were in senior positions in FENAKA at the time have also been charged. They are charged with using their position to obtain an unfair advantage and acting otherwise in a matter that would benefit the state under the Prevention and Prohibition of Corruption Act.

ACC said the case was sent to the prosecutor’s office in connection with agreements signed with private companies to procure goods for the FENAKA Corporation in 2014 and 2015 where in which the interests of suppliers were found to have been given priority.

According to the documents obtained for the investigation, the supplier delivered the goods after the deadline specified in the agreements.

Although the agreements and FENAKA’s procurement policy state that if the goods are not delivered by the date specified, liquidated damages will be deducted for the period of delay in delivery of the goods when payment is made to the supplier, FENAKA had paid the suppliers without or with less than the amount of liquidated damages.

ACC also said that FENAKA Corporation has lost more than MVR 1 million due to liquidated damages not being deducted or paying less than the deductible amount to suppliers. The investigation also revealed that the accused had given priority to the interests of the contracted companies over the interests of the FENAKA Corporation.