State-owned water company, Malé Water and Sewerage Company (MWSC), has terminated an accommodation agreement for foreign employees of its subsidiary, Island Beverages Maldives (IBM), following complaints regarding the agreement’s finalization process. Managing Director Abdul Matheen Mohamed confirmed that disciplinary action will be taken against involved staff.

Matheen disclosed to Mihaaru that the MWSC board received complaints about the agreement last month, well before the issue surfaced on social media. In response, the board instructed IBM on December 18 to cancel the agreement.

“When we [MWSC] received the complaint, we audited the process. We have to audit when complaints arise, no? When we looked into it, there are aspects that need to be improved; there are issues in the process too. We did an assessment of the prices as well, and we realized that it is in the best interest to re-announce it,” said Matheen.

The audit committee examined the matter, recommending the cancellation of the agreement. Matheen emphasized that any negligence on the part of employees involved will also be investigated. “If there is any negligence on the part of an employee, it will also be investigated,” he assured.

A case of alleged corruption involving agreements to lease a two-storey building for IBM’s foreign employees and its godown space recently surfaced. A copy of the agreements was leaked on X (formerly Twitter), revealing irregularities in the procurement process.

Both agreements were signed with a company identified as Tele Maldives, bypassing a tender process. The initial agreement, dated August 27, stipulated a monthly rent of MVR 60,000. However, it was canceled, and a new agreement signed on October 22 increased the rent to MVR 200,000 — an MVR 140,000 increment — covering both accommodation and storage space.

The five-year agreement included an advance payment of MVR 400,000, with IBM’s Managing Director, Mohammed Jinan Jaleel, signing on behalf of the company.

MWSC’s board, acting on the audit committee’s recommendations, is committed to ensuring transparency and accountability in addressing these issues.