Dubai Firm Ordered to Compensate MVR 34.5 Million for Undelivered Ventilators

The Maldives International Arbitration Centre (MIAC) has ruled in favour of the Maldivian government in a case against Dubai-based Executors General Trading, instructing the company to pay MVR 34.5 million over its failure to deliver ventilators as per a contractual agreement. 

The agreement, initiated between Maldives’ Health Ministry and Executors General Trading on April 2, 2020, aimed at procuring 75 ventilators crucial for treating COVID-19 patients during the pandemic.

According to a statement released by the Attorney General’s Office (AG Office) yesterday, MIAC’s decision follows a case submitted for arbitration by the Maldivian government in February 2023. 

The government sought reimbursement for undelivered ventilators and USD 2.1 million in damages resulting from the non-delivery, along with interest and arbitration costs, totaling MVR 32.5 million.

MIAC has ruled that Executors General Trading must pay USD 1.8 million for the undelivered ventilators, with a two percent annual interest rate applied from May 2, 2021. Additionally, the company is instructed to pay USD 223,750 in liquidated damages, subject to the same interest rate.

AG Office highlighted that Executors General Trading did not participate in any of the arbitration hearings, and the government incurred USD 132,865 in arbitration fees. MIAC ruled that the company must reimburse this fee, subject to the same interest rate.

Consequently, the total amount owed by Executors General Trading to the Maldivian government amounts to MVR 34.5 million.

AG Office stressed the necessity of legally enforcing the award and affirmed ongoing efforts by the government in this regard. Furthermore, the office highlighted the significant losses incurred by the Maldivian government and announced collaborative efforts with relevant authorities to conduct further investigations.

The case revolves around a contract worth MVR 34.50 million awarded by the Health Ministry to Executors General Trading for the procurement of 75 ventilators in 2020.

Despite receiving 90 percent of the payment, equivalent to MVR 30.91 million, the company only delivered 15 ventilators, and the Health Ministry did not secure any advance or performance guarantees prior to making the payment.