Maldives seeks MVR 31 million over undelivered ventilators

Maldivian government has instructed Dubai-based Executors General Trading to return MVR 31 million for failure to deliver a shipment of ventilators as contracted. 

Sun has been informed the Health Ministry sent notice to Executors General Trading to return the payment within 30 days on August 10. 

Executors General Trading was awarded an MVR 34.50 million contract by Health Ministry to procure 75 ventilators to improve the capacity of the Maldivian health system to treat COVID-19 patients back in 2020. 

However, Executors General Trading only delivered 15 ventilators, and while Health Ministry paid MVR 30.91 million, which made for 90 percent of the total payment, to the company as an advance, without obtaining an advance guarantee or a performance guarantee. 

Maldivian government served notice for termination of the contract for failure to deliver the ventilators on May 2. 

The Attorney General’s Office said that the contract stipulated that the company should deliver the ventilators within 29 working days after the advance payment is made, and that failure to deliver the ventilators within the period was grounds for termination of the contract. 

Attorney General’s Office said that the contract stipulated that the company should also return the payment if it fails to deliver the ventilators within the contracted period. 

Maldivian government has decided to file for arbitration if Executors General Trading fails to compensate for direct damages due to failure to honor the contract.