Loss of MVR650 million incurred from Heavy Load

Thilafushi Corporation Limited (TCL) has said that a loss of MVR650 million has been incurred because Heavy Load Maldives had not reclaimed the agreed 152 hectares of land within the granted period.

Speaking at a Parliament Public Accounts Sub-Committee, attorney representing TCL Mazlan Rasheed said today that Heavy Load was given the Thilafushi reclamation project to be completed within a period of 6 months. He said that if the project had been completed, and if the lands had been leased, the company would have earned $400 million. He also said that Heavy Load had so far reclaimed only 32 hectares and that a further $1 million needs to spent on leveling the ground that they had reclaimed. He said that this would all sum up to a loss of about MVR650 million.

“When the agreement was made and signed, there was no involvement of a law firm, especially not ours,” Mazlan Rasheed said.

He said that even though they were warned not to sign for the things presented as bid security by Heavy Load, the company’s Board of Directors at that time had gone ahead and signed for these things. He also said that now there are three ways to deal with the agreement and that they are to go forward with the agreement, make amendments to the agreement and then continue with the project, or to terminate the agreement.

He also said that the company might suffer losses due to blunders they had committed to in the past.

When asked repeatedly by the committee if they had decided on a final deadline to make a decision on the Heavy Load agreement, the Chairman of the company Mohamed Rasheed insisted that they are working on solving the problem and that they had requested the Attorney General for a professional legal opinion.

Speaking at the committee, the Managing Director of TCL IlhamIdhrees said that Heavy Load had issued a cheque of MVR16.1 million as financial security, but the cheque had bounced when they had tried to cash it. He said that the cheque-bounce issue has been reported to the police.

Thilafushi reclamation project was awarded to Heavy Load for a sum of $21 million (MVR323 million). The company has however ceased their operations in Thilafushi and moved their reclamation equipment from the work site.

State has prosecuted three former TCL board members - Ibrahim Riyaz of Ma.Mazaage, Mohamed Wafir of G. Rangiriteege and Ahmed Adhlyof Ma.Raahaa - accused of corruptly aiding Heavy Load.