MIMS: Manadhoo school delays due to funding issues, not negligence

MIMS Construction Pvt Ltd, the contractor responsible for the new school building project in Noonu Atoll Manadhoo, asserts that no charges have been levied for uncompleted work, attributing project delays to insufficient funding.

Last week, during President Muizzu's meeting with the residents of Manadhoo, the island's council president informed him that the school building's construction had spanned five years without completion. The President subsequently addressed this in his speech, stating that the contractor would be granted one final opportunity to conclude the work, after which the contract would be terminated if deadlines were not met.

The President indicated that the government had disbursed all due funds for the project, and that the delay was attributable to contractor negligence.

MIMS Construction, the contractor for the Manadhoo school building, stated that the contract for the building was executed on December 22, 2021. Construction commenced on January 10, 2023, following the resolution of various site-related issues. The company reported that two years and six months have elapsed since the project's inception.

Excluding delaying factors, the company notes that active work spanned only a year and a half, and the project's completion deadline was not imminent.

The company affirmed receipt of an advance payment guarantee and advance payment for work completed to date, totaling MVR 12,633,928.28, inclusive of the final bill upon project completion. Additionally, MVR 2,806,108.47 remains outstanding for work not yet finished.

The company further stated its unawareness of the Ministry of Finance paying for unfinished work, as the competent authority released funds for project work only after verifying completion and submitting photographic evidence.

MIMS Construction attributed the project's delay to the contractors not receiving due payments or bills submitted after work completion. The most recent payment for the project was reportedly delayed by approximately three months.

"Consequently, the company has been investigating since July 24 how misleading information about the company was discussed at a meeting attended by the Honorable President of the Republic of Maldives," stated MIMS Construction Pvt Ltd.

The company has condemned the dissemination of unsubstantiated allegations concerning the company on social media and in certain media outlets.

In a separate matter concerning MIMS Construction, claims arose regarding unpaid land rent of MVR 44,625.82 to the Thinadhoo City Council. In response, the company's MD and MP Saudullah Hilmy stated at the time that the purported unpaid land rent was not payable, and the land had never been utilized due to the council's failure to clear the site.

Further reports emerged concerning Swift Engineering Company, also owned by Saudullah, owing MVR 89,695.89, and MIMS Construction owing an additional MVR 44,625.82. Saudullah addressed these accumulating figures by asserting that both companies were engaged in governmental projects. He added that bills submitted to various government offices since 2021 have consistently experienced significant delays, leading to financial difficulties within his own company and hindering the companies' ability to fulfill payment obligations.

He also conveyed dissatisfaction, asserting that these challenges were not a consequence of the companies' actions, but rather stemmed from the financial limitations afflicting the nation's economy due to the misuse of public funds, theft, corruption, and increased waste.