Maldivian state to pay 29 million as compensation to Indian company in charge of Kulhudhuffushi hospital

14 Apr 2023 | 13:28
HDh. Kulhudhuffushi Regional Hospital

Auditor General's Office (AG) report shows that Indian company Noor Islamic Private Ltd. (NII) were to receive 29 million as compensation from the Maldivian state after the termination of a contract settled in 2017 regarding the running of HDh. Kulhudhuffushi Regional Hospital.

This contract handing over the running of the hospital to NNI for 50 years was terminated on the 27th of October 2019, after two out of fifty years. 

According to the AG office report, the contract was terminated after NII was given a total of 29 million rufiyaa, out of which 19.9 million was given as fund from Aasandha, and as fund for equipment and machinery purchased for the development of the hospital, and another 9 million rufiyaa was given as medical consumables, staff salaries and other expenses. 

This money was handed over to the NII by the Ministry of Finance in  November and December of 2019. 

157 bills of 1.9 million was sent by different groups during the time that HDh. Kulhudhuffushi Regional Hospital was being run by NII.

The report says that HDh. Kulhudhuffushi Regional Hospital has not paid 1.7 million out of these 1.9 million, and the 0.14 million is not assured to have been even utilised. 

It was also highlighted that the settlement agreement signed between Maldives Health Ministry and NII had no set procedure for unpaid finances in return for services, which could result in the Maldivian government having to take responsibility for any issues that may arise in the future. 

AG has suggested that any settlement agreements signed in the future should have a procedure for when due payments are not made, which would hold the respective groups or parties accountable, in order to avoid conflict. 

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