Minister: Kuwait withdrew funding because former gov violated policy

The Kuwait Fund withdrew funding for a project to build 30-bed hospitals in several Maldivian islands because the former administration violated policy, says Health Minister Dr. Abdulla Khaleel.

Khaleel, who was summoned to the Parliament on Monday, was questioned by Velidhoo MP Mohamed Abdulla Shafeeq regarding a project to build a 30-bed hospital in Velidhoo.

Khaleel responded that Kuwait Fund had pledged grant assistance to support the construction of hospitals, but later withdrew funding “because the former administration violated policy.”

He said that the former administration later decided to run the project with funding from the state budget, but failed to allocate sufficient funds in the 2024 budget.

“It is stalled because the fund was withdrawn or stopped,” he said.

The contracts to build 30-bed hospitals in seven islands, including Velidhoo, with funding from the Kuwait Fund, were awarded in May 2023.

The construction of hospitals in HDh. Hanimaadhoo, ADh. Maamigili, V. Felidhoo and Th. Vilufushi was awarded to construction company, Duplex Pvt. Ltd., while the projects in Sh. Milandhoo, N. Velidhoo and K. Thulusdhoo was awarded to Indian company, Anand Buildtech Pvt. Ltd.

Kuwait Fund had pledged MVR 686 million for the project.

Khaleel’s remarks follow similar comments by President Dr. Mohamed Muizzu last month.

Addressing a rally in Hanimaadhoo on February 26, President Muizzu said that the Kuwait Fund dropped its funding because the former administration delayed the implementation of the project.

“The Kuwait Fund pledges grant assistance. The former administration failed to utilize the fund and delayed and delayed the implementation of the project, until it eventually withdrew funding,” he said, accusing the former administration of “carelessness” and “mismanagement.”

However, the claims were denied by former Finance Minister Ibrahim Ameer. He dismissed the remarks as false and said the president should “hire capable individuals who provide you with correct information.”

The government’s assertion that the Kuwait Fund withdrew its funding comes with construction of some of the hospitals already in progress.