Judicial Service Commission (JSC) has stated it has submitted a case to the Anti-Corruption Commission (ACC) regarding former Villingili Magistrate Ahmed Shukoor illegally transferring funds to Vimas Maldives Private Limited.
In 2010, Vimas Maldives filed a lawsuit at the Villingili Magistrate Court against Philippines company PBDC, which had been working to construct housing units in the island as replacement homes after the 2004 tsunami disaster. Vimas Maldives filed the lawsuit to obtain USD 5,000 owed by PBDC for the supply of sand needed for the project, and also requested the court to levy a 2% interest each day the company does not pay back the amount, from May 2010 onwards.
Villingili Magistrate Court concluded the case after ordering PBDC to pay USD 110 million but the state claimed responsibility for paying the amount in order to prevent PBDC from halting its construction of the housing units. Afterward, Villingili Magistrate Court ordered the state to transfer the payment to the court's bank account, but the High court nullified the order after the state filed an appeal.
Despite nullifying the order, the Ministry of Finance transferred the payment to the magistrate court's bank account and repeatedly requested the court to return the payment after claiming that the funds were transferred by mistake. However, the magistrate court had transferred the payment to Vimas Maldives.
In a press release, JSC stated it has investigated the magistrate court's illegal transfer of funds to Vimas Maldives and found that the then Magistrate Ahmed Shukoor had irresponsibly made the decision against established laws and regulations. JSC also stated it requested ACC to investigate the case and take action against the magistrate in January.
Furthermore, the High Court has ordered the relevant institutions to penalise all individuals who had allowed the loss of funds from the state treasury through negligence.