MP Shujau removed from Public Accounts Committee over leaked FIU report flagging suspicious transactions

The ruling People’s National Congress (PNC) on Monday pulled the party’s second top parliamentarian, Ibrahim Shujau, from the Parliament’s Public Accounts Committee, two days after report compiled by the Financial Intelligence Unit (FIU) flagging MVR 42.5 million in suspicious financial transactions linked to the Baarah representative leaked on social media.

The analysis report, which covers transactions from November 1, 2023 to January 10, 2024, was leaked via anonymous X account ‘Hassan Kurusee’ on Saturday afternoon. It includes an MVR 23 million contract awarded to Sifainge Welfare Corporation (SIWEC) for the 2023 presidential inauguration, which SIWEC subcontracted to three companies linked to Shujau, including his event management company Official Events.

On Sunday, the police confirmed they had been investigating the suspicious transactions linked to Shujau since April.

Amid mounting public outrage over the allegations, Speaker Abdul Raheem Abdulla announced changes made by PNC to their representatives in committees.

As such, Shujau has been moved from the key Public Accounts Committee to the National Development and Heritage Committee, where he replaces South Feydhoo MP Ibrahim Didi. Meanwhile, Shujau’s spot in the Public Accounts Committee is now filled by Guraidhoo MP Hanan Mohamed Rasheed.

While the PNC has not provided an official explanation for the changes, it comes two days after the FIU report on Shujau leaked on social media.

In the aftermath of the leaked report, Abdulla Ashraf was removed from his role as head of the FIU on Sunday and transferred laterally to the Risk and Compliance Unit of the central bank.

Ashraf was replaced by Ismail Sajid, who had been serving as a member of the Tax Appeal Tribunal up until his resignation on July 14.

A spokesperson from the Maldives Monetary Authority (MMA) said the changes were made “to improve the efficiency” within the central bank.

The leaked report covers transactions linked to the Baarah parliamentarian from November 1, 2023 to January 10, 2024. This includes transactions related to President Dr. Mohamed Muizzu’s presidential inauguration on November 17, 2023 – an event organized by the Parliament secretariat. According to the report, SIWEC was awarded an MVR 23 million contract for the event, which then subcontracted the project to three companies.

• MVR 13 million to Shujau’s Official Events
• MVR 4 million to DG Holdings
• MVR 2.3 million to Quick Sure, a company owned by Shujau’s cousin Mohamed Nafiz

According to the report, Shujau and his business partner Ahmed Adham used MVR 8 million out of MVR 13 million received by Official Events to purchase two luxury apartments from Hulhumale’.

Official Events received over MVR 29 million in major event management contracts from different government agencies and state-owned enterprises, particularly after the election of the PNC administration.

And between 2022 and 2023, Quick Sure also received MVR 10 million from the Male’ City Council. This was back when Shujau was serving a councilman and President Muizzu as Male’ City mayor.

The FIU made the following observation:

• The funds received by SIWEC were possibly misappropriated
• Shujau had been closely involved in the transitional period of the PNC administration, and even attended and led meetings with SIWEC and the Parliament secretariat regarding the inauguration ceremony preparations, which ultimately resulted in substantial financial gains for him – indicating possible misuse of authority, corruption and illicit enrichment
• Shujau and his close associates and related companies significantly benefitted from the inauguration ceremony
• Other than the 2023 inauguration ceremony, Official Events has also been awarded numerous major event management contracts from different government agencies and SOEs since the PNC administration came to power, suggesting Shujau may have leveraged his political influence to gain preferential treatment for his company and related other entities, directing towards potential misuse of corporate vehicles for laundering funds possibly acquired through illicit means

The FIU concluded that the involvement of government officials, former parliamentarians and a close associate of a politically exposed person, as well as the apparent layering of the transactions indicate that the transactions and entities must be further investigated. The unit concluded that the layering of the transactions is also an indicator of disguising the true legal and economic purpose of transactions, often intended to hide the source of funds and create a complex paper trail, making the intended purpose of certain transactions questionable.

Responding to the leaked report, Shujau wrote in a post on X on Saturday evening that he does not know whether the report is fake or real “because I haven’t received any information regarding this from any official authority.”

Therefore, while the police say they have been investigating the case since April, it puts into question whether they have questioned Shujau.

Shuaju has denied the allegations against him, saying that Official Events has secured government event contracts throughout different administrations.