The government has decided to nullify the agreement made with UAE-based Executors General Trading (EGT) for the procurement of 75 ventilators.
According to a press statement released by Attorney General’s Office, the agreement made between the Ministry of Health and EGT for the procurement of 75 ventilators in response to the COVID-19 pandemic has been nullified due to the company’s inability to provide ventilators on the agreed-upon timeframe of 29 days after the advance payment was made. Maldives received just 15 of the 75 ventilators requested under the agreement.
Since the company has failed to provide the 75 requested ventilators within the specified duration, as cited in the agreement, the Ministry of Health has been granted the power to terminate the contract. As such, a ‘termination notice’ has been sent to the company informing of the decision on 2nd May 2021.
Moreover, EGT is now liable to return the full advance payment along with compensation for the losses or damages caused by their inability to provide the ventilators on the agreed timeframe, and failure to do so will result in a formal case against the company at the Arbitration.
The Attorney General’s office stated that all matters regarding the agreement will be resolved by Maldives International Arbitration Centre, which will abide by the rules and regulations of the Maldives and will have experienced arbitrators from abroad.
Furthermore, the statement also read that Maldives and United Arab Emirates (UAE) are both members of ‘Convention on the Recognition and Enforcement of Foreign Arbitral Awards’ and ‘Article 168’ of the convention. Any verdict delivered in an International Arbitration Court within a member country of the convention can be carried out in other member countries.
The case has attracted a lot of controversies as several irregularities and corruption were later discovered in the dealings with the company.