Dubai-based Executors Company, which was entrusted with the purchase of ventilators during the COVID-19 pandemic, has been ordered by an arbitration court to pay more than USD 2.2 million (MVR 34.6 million) to the Government of Maldives for failing to supply the ventilators to the Maldives.

The company and Maldives signed an agreement on April 2, 2020 to deliver 75 ventilators. The matter was referred to the International Arbitration Centre on February 19, 2023, for the company's violation of the agreement.

In the case, the State of Maldives has sought a total of MVR 32.5 million (USD 2.1 million) in compensation for the damage caused to the Government of Maldives for not bringing the ventilators and the cost of interest and arbitration.

The Attorney General's office issued a statement on Wednesday stating that the ruling stipulated that the government would have to pay USD 1.9 million in the cost of ventilators not supplied by the executors and 2 percent of interest per year from May 2, 2021 until the completion of payment.

The ruling also stipulated that USD 223,750 in damages be paid and 2 percent interest for each year spent till the amount is paid to the government.

According to the AG's office, during the course of the arbitration, the executors did not attend any of the hearings in the case and since the company had not even paid the arbitral cost of the case, all the dues were paid by the state government.

Therefore, when the government asked for $132,865.56 to be paid as arbitration costs, the executors were ordered to pay the interest amount to the Government of Maldives at the rate of 2 percent per annum until the payment was made.

The AG's office said that since the verdict was legally enforceable, the government would continue to recover the amount earmarked in the judgment.