Gov’t Pursues Damages in Dubai Courts Over Failed Ventilator Deal

The Maldives government has taken legal action in Dubai courts, seeking compensation amounting to MVR 32 million for undelivered ventilators. The move comes after an agreement made in April 2020 between the Ministry of Health and Dubai-based Executors General Trading failed to materialize as per the terms established by the previous administration.

The arbitration process has awarded the government the sought-after compensation, comprising both the value of the ventilators and damages for the breach of contract. 

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Attorney General Ahmed Usham stated in a recent press conference that despite the absence of any submissions from the company during arbitration, efforts are underway to escalate the matter in Dubai courts, where the company is registered.

Highlighting the significant losses incurred by the state due to the ventilator debacle, Usham affirmed the government’s commitment to pursuing restitution. “The state has had to incur a lot of expenses by submitting to arbitration,” he stated.

Under the agreement, only 15 ventilators were received by the government, all of which failed to meet the agreed-upon standards and were consequently rejected by the Health Ministry.

Subsequently, efforts were made to reclaim the MVR 31 million advanced for the remaining undelivered ventilators.

The Anti-Corruption Commission shed light on procedural irregularities surrounding the initial contract award, citing the absence of a bank guarantee and insufficient due diligence regarding the supplier’s capacity to fulfil the agreement.

With MVR 34 million disbursed to Executors General Trading without adequate scrutiny, questions surrounding the propriety of the transaction have come to the forefront.