SIFCO instructed to recover funds owed to govt for housing project

Anti-Corruption Commission (ACC) has instructed ordered Sifainge Corporative (SIFCO) to recover the payments owed to the government by the private contractor that took on the project to build 300 flats for MNDF personnel in reclaimed Hulhumale'.

The initial agreement made between the company and SIFCO to build the flats was terminated as work was not progressing according to the agreed terms. Three post dated checks provided by said company to SIFCO were returned by the bank, due to which MVR 92.6 million owed by the company to SIFCO were not received by the corporative.

In a statement released by ACC on Sunday, they revealed that the agreement between the company and SIFCO was terminated on 27 January 2016. Up until the date of termination, MVR 92.5 million is owed by the company to SIFCO.

The three post dated checks that were provided to SIFCO by the company to pay off the amount were returned by the bank due to insufficient funds, said ACC.

Several attempts were made by SIFCO to acquire the funds, including filing a case with the police over the returned checks. Discussions also took place between SIFCO and the Attorney General’s Office on ways to acquire the outstanding sum.

ACC’s statement further read that Ministry of Finance has been instructed to deduct the pending amount to SIFCO if the company is to receive any payments from the government for other projects. ACC has also advised SIFCO to file a legal case against the company if the government has no outstanding payments due to be paid to the company.