The Anti-Corruption Commission (ACC) has asked the Prosecutor General’s Office to file money laundering charges against Popular Maldives Pvt Ltd over alleged illicit funds linked to the Maldives Marketing and Public Relations Corporation (MMPRC) scandal.

The case was submitted to the Prosecutor General’s Office on 10 February.

In a statement, the ACC said its investigation found that USD 150,000 in state funds was transferred from SOF Pvt Ltd to Popular Maldives between February 2014 and October 2015. The funds were part of revenue that should have been paid to the state from the lease of islands and lagoons for tourism development.

The commission said the money was deposited into Popular Maldives’ bank account on 13 July 2015 through an SOF cheque. Investigators allege the company attempted to disguise the funds as proceeds from foreign exchange transactions in order to conceal their true source.

The ACC said the investigation established that the money was criminal proceeds and that efforts had been made to obscure its origin and ownership.

The commission has requested charges under Article 53(a) of the Prevention of Money Laundering and Financing of Terrorism Act. It has also asked the court to order the recovery of the USD 150,000 received by Popular Maldives.

The ACC further said funds used as acquisition costs for Th. Olhugiri were also derived from illicit proceeds.

Under the lease agreement, Popular Maldives was required to develop a resort on Thaa Olhugiri within 36 months of signing the contract. The Ministry of Tourism and Civil Aviation was granted the authority to terminate the agreement and claim liquidated damages if the project was not completed within the stipulated period.

As the company failed to meet its contractual obligations, the ACC said it had decided to refer the matter to the ministry to reclaim the island for the state.

The commission added that it is continuing discussions with the Prosecutor General’s Office on several other serious cases linked to the MMPRC corruption scandal.