BML notified to halt operation of two companies

The Anti-Corruption Commission (ACC) has notified Bank of Maldives (BML) to halt the work of the two companies registered under BML, while the commission investigates issues related to the two companies.

President of ACC Hassan Luthfy told Sun Online today that ACC notified BML yesterday to temporarily halt operation of BML Properties Limited and BML Investment Limited.

“We have been informed of problems related to the two companies through the media, and investigations are under way. As such, they have been informed to halt operation until we notify otherwise. Private groups have also filed complaints after the commission commenced investigations. Complaints include the issue of the chairman holding shares in the company, and the issue of efforts to manage mortgaged property instead of selling them as ordered by the court. Some people have also complained saying that their mortgages have been sold, and that their cases were not dealt with in the same manner,” he said.

Luthfy said that BML has been requested to provide documents on the two companies necessary for the investigation by ACC.

Rumours have been going around, that one percent of shares of Properties Limited was given to Chairman of BML Dr Abdullah Shiham, while some shares of Investment Limited were given to CEO of BML Peter Horton.

BML has not yet provided any information on the two companies.

BML created BML Properties Private Limited in order to transfer the mortgaged assets of Reethi Beach Resort to BML. Leader of DRP Ahmed Thasmeen Ali previously held shares of Reethi Beach Resort.

A government official said that Tourism Ministry had been requested by BML Properties to change the head lease of Reethi Beach Resort.

Similarly, Civil Court has permitted BML to sell the assets mortgaged for a loan taken by Funaddoo Tuna Products, subsequent to failure by Funaddoo Tuna Products to repay the loan in accordance with a previous Civil Court ruling. Medhu-henveiru MP Ali Azim, Alifushi MP Mohamed Nashiz, Ahmed Rasheed of M. Rafeeguge and Reethi Beach Resort have been put down as guarantors for this loan.

The loan taken by Funaddoo Tuna Products is worth MVR117 million, and with interest the amount has gone up to MVR206 million.