Due to significant delays in projects and consequent losses, two companies have been suspended for the first time under the Public Finance Regulation.
As per the Public Finance Regulation, after successfully bidding for projects, if the party that undertakes carrying out the project goes against the regulation, action must be taken after considering the companies and suppliers involved. According to the regulation, there are circumstances where the company in charge of the project may be suspended in this case.
Under the regulation, the Finance Ministry’s review committee took action against LF Construction, as well as a supplier known as Energy Management Systems.
According to the Ministry’s website, LF Construction, which was contracted to build the Sh. Foakaidhoo Community Center, has been suspended until 22nd November 2022. Energy Management Systems, which was contracted to provide waste management machinery to AA. Bodufulhadhoo, Mathiveri and Maalhos, has been suspended until the end of May 2022.
Until the companies reach the end of their suspension, no state projects shall be contracted to them.
The Public Finance Regulation states that there are several reasons that a bidding company or supplier may be suspended. Apart from delays in project work, reasons include providing incorrect information during the bidding process, obstructing other parties from participating in the bidding process, as well as submitting bids under several company names to increase the competitiveness of the original bid.
