The Parliamentary Standing Committee on Public Accounts has launched an inquiry into the alleged release of MVR 44 million in 2023, tied to a project awarded to North Coast Construction Private Limited, a company owned by Ali Hameed, the former MP for the Isdhoo constituency.

Given the case's significant implications for public interest, the committee has emphasised the urgency of the investigation. A formal request has been issued to prioritise the matter by establishing a specialised investigation team to examine the details and expedite the process. The committee has also advised that any similar projects involving the same parties should be scrutinised to ensure comprehensive accountability.

The controversy stems from a project awarded in September 2016, when North Coast Construction secured a MVR 61 million contract from Aasandha to construct a six-storey hospital building. With a projected profit margin of three percent, the project was expected to generate MVR 18.3 million for the company. However, by June 2017, budgetary constraints led Aasandha to instruct the company to pause work. Construction never began, and the company subsequently claimed financial damages, resulting in a settlement agreement.

Under the terms of the settlement, North Coast Construction was awarded a new project to construct a 10-storey office building in Hulhumalé. In 2023, an advance payment of MVR 44 million was disbursed in two instalments. However, concerns have since been raised about the lack of tangible progress on the new project and the absence of documentation indicating that the company procured materials for the original hospital project.

During a Public Accounts Committee meeting, MPs criticised the arrangement, describing it as highly irregular. It was noted that the company’s claimed financial losses from the halted hospital project were capped at MVR 18 million, yet it received a settlement project valued significantly higher, coupled with an advance payment. Deputy Speaker Ahmed Nazim voiced strong criticism, highlighting that such a substantial sum had been disbursed despite no work commencing on the new project.

In response, the committee had categorised the matter as a potential scam and resolved to file a police complaint. The complaint seeks to initiate a criminal investigation to trace the disbursed funds and determine whether misconduct occurred in awarding the settlement project.

Ali Hameed's shifting political affiliations have further fuelled public scrutiny. Initially elected to Parliament under the Jumhooree Party banner, he later joined the Maldivian Democratic Party (MDP) before aligning with the current ruling party, the People’s National Congress (PNC), in December 2023.

The investigation aims to shed light on the payment’s legitimacy and ensure that those responsible for any misuse of state funds are held accountable.