Money intended to rebuild houses in Meemu atoll Kolhufushi after tsunami damage was instead sent to another country via telex transfer, chairman of budget review committee Ahmed Nazim alleged last night.
Nazim claimed that Rf 256 million (US$20 million) allocated to the reconstruction project in the supplementary budget on 20 April 2009 had been sent overseas 18 days earlier.
“This was done in violation of the budget passed by the People’s Majlis,” reads the budget committee report.
The Rf256 million was originally earmarked for purchasing shares of the Maldives Water and Sewerage Company (MWSC), but was reallocated to construct houses in Meemu Kolhufushi and Thaa Madifushi, two islands devastated by the tsunami.
“The amount was still included in the budget proposed 18 days later and even when the item was changed, we note that the government did not provide this information to the Majlis,” Nazim said. “This has to be looked into further. We will investigate and find out how this happened.”
During last night’s debate, Maafanu West MP Abdullah Abdul Raheem said the Rf 256 million was telexed abroad on two separate occasions on 2 April.
“I don’t know where it was sent yet, but I believe it was sent to Denmark,” Raheem said.
The transfer was not so much suspicious as “a matter of misleading the parliament,” Nazim claimed.
“The government submitted the budget requesting Rf256 million to purchase MWSC shares from two companies. Now we know that money was transferred before the budget was tabled in the Majlis,” he said.
During his presentation of the budget report, Nazim was interrupted by a point of order from MDP MP Ahmed Hamza who accused him of misusing the time to present the budget report on unrelated matters.
“These things have been written in the report and can be seen by the members,” Nazim responded. “This is not something I am saying on my own. This is the truth. No matter how much you try to hide the truth, it can’t be done.”
The budget review committee had also found that the government failed to conduct a research study into universal health care in the first six months of 2009, and had sold its shares in telecoms provider Dhiraagu without seeking parliament’s approval.
Responding to the accusations in parliament today, Finance Minister Ali Hashim said MPs had been “repeatedly informed” of how the funds were used.
“The transaction occurred before the revised budget was passed under an agreement signed by the government,” he said. “I have informed Majlis about this before as it was stated in the agreement.”
The agreement was made with a foreign company to purchase shares of MWSC, he said, adding the government has secured funds to rebuild houses for displaced victims of the tsunami.
Moreover, said Hashim, the majority stake of Dhiraagu was sold in accordance with the constitution and the financial regulations.
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