The Anti-Corruption Commission (ACC) has said that the Border Control System (BCS) project, contracted to Malaysia’s Nexbiz for 20 years, will result in a loss of MVR2.5 billion for the Maldivian government.
ACC made this statement while sharing its findings on the BCS project with the Parliament’s Finance Committee today.
ACC shared several documents including the agreement made with Nexbiz and cabinet discussion papers on the issue of 18 April 2011.
According to financial estimations, based on passenger traffic to and from Maldives, Nexbiz will collect an income of $47.5 million (MVR732.45 million) in the first eight years as tax as a result of the BCS project.
In comparison, the royalty received by the government for the same period is only $2.5 million (MVR38.55 million).
While Nexbiz receives an income of $166.725 million (MVR2.5 billion) in total by the end of 2030, the royalty collected by the government is a mere $8.7 million (MVR134.2 million).
President of ACC Hassan Luthfee explained that the governments of the US and India had offered free installation of a BCS in Maldives.
He noted that the government will incur a loss of MVR2.5 billion due to the BCS project, while it also imposes a burden on the Maldivian people.
Luthfee said that the BCS agreement involves corruption, and that investigations are being carried out in collaboration with a foreign group.
“Every fee imposed on citizens is a fee collected from the government. The loss of MVR2.5 billion is a total loss,” he said.
The presentation shared by ACC on the BCS revealed that the winning proposal for this project was submitted by a company named Iris, while Nexbiz came second.
Immigration Department, however, fraudulently awarded the project to Nexbiz.
Investigator Mohamed Sodig said that changes had been made to Nexbiz’s proposal by Immigration Department prior to presenting it to Finance Ministry.
Discussions had even taken place at cabinet meetings of former President Mohamed Nasheed’s government, regarding deception surrounding the financial evaluation of the project.
Then Attorney General Ali Sawad had advised the cabinet to annul the agreement with Nexbiz, and pay the necessary amount in compensation.
Despite it being stated in the proposal that Nexbiz will facilitate 200,000 identity cards and 29 scholarships, these items had been omitted from the agreement.