MDP warns BML of major risks in financing 206 gov't-awarded projects

The opposition Maldivian Democratic Party (MDP) has accused the Bank of Maldives (BML) of illegally financing 206 government-awarded projects, warning the move could expose the bank to significant financial losses.

On November 6, the government awarded 206 projects to 53 companies without competitive bidding. In a letter to BML Chairman Ahmed Ali Habeeb, MDP Legal Director Ahmed Mauroof argued that the Finance Act requires procurement through fair and competitive tendering, and that recent amendments allowing the Cabinet to bypass this process were unlawful.

“The government has illegally amended the Finance Act to award projects without announcement or tendering, creating room for systematic corruption,” the letter stated.

Mauroof noted that BML’s financing rules require feasibility assessments and guarantees, which many of the awarded companies cannot meet. Some firms, he said, lack construction experience, raising doubts about project completion. “If the bank issues finance to these companies, it is likely to cause a significant financial loss,” he warned.

The MDP stressed that issuing finance without proper guarantees would be illegal under the Banking Act and urged BML to halt funding. The party also pledged that a future government would investigate the transactions and hold those involved accountable.

Separately, the MDP submitted a letter to Prosecutor General Abbas Shareef, requesting that the Anti-Corruption Commission (ACC) investigate the financing decision. The party has consistently criticized the government for awarding contracts to state-owned companies without open competition, a practice that has drawn concern from private sector firms.

Press Release: MDP Advises BML to Refrain From Financing Unlawful and Unsecured Contractshttps://t.co/LBvD5vhAc4 pic.twitter.com/octsSIxb6h

— MDP Secretariat (@MDPSecretariat) November 25, 2025