Charges sought against two children of Riyaz Rasheed over MMPRC graft

The Anti-Corruption Commission (ACC) has sought charges against Popular Maldives, a company linked to the family of former Vilifushi MP Riyaz Rasheed, from the Prosecutor General’s Office (PG Office) in connection with the Maldives Marketing and Public Relations Corporation (MMPRC) graft scandal.

The case concerns allegations that Popular Maldives received funds from SOF Private Limited, with the money allegedly originating from state revenue generated through the lease of islands and lagoons for tourism development between 2014 and October 2015.

According to the ACC’s investigation, USD 150,000 was deposited into the account of Popular Maldives through an SOF cheque on July 13, 2015. Records from the business portal indicate that the company is registered under the names of Rausham Riyaz and Reesham Riyaz, who have been identified as the children of Riyaz Rasheed.

ACC stated that the company allegedly attempted to portray the transaction as a legitimate foreign currency exchange deal involving purchasing and selling of US dollars.

“The investigation has revealed that Popular Maldives Private Limited attempted to conceal the true nature, source, and rights associated with these funds, as well as to misrepresent how the money was acquired,” the ACC said in a statement issued today.

The Commission further stated that the funds used as acquisition costs for Th. Olhugiri were obtained through criminal means. Under the lease agreement for Th. Olhugiri, a resort was required to be developed within 36 months of signing the agreement, failing which the Tourism Ministry retained the right to impose liquidated damages or terminate the agreement. However, the ACC investigation found that those conditions had not been fulfilled.

As a result, the ACC has recommended charges under the Prevention of Money Laundering and Financing of Terrorism Act. The Commission has also initiated efforts to recover the USD 150,000 deposited into the company’s account.

Additionally, citing the breach of the lease agreement, the ACC stated that it has decided to instruct the Ministry of Tourism and Civil Aviation to repossess Th. Olhugiri.

A previous ACC report alleged that USD 455,000 in embezzled funds linked to Riyaz Rasheed had been transferred to Popular Maldives through two separate transactions conducted via his company, Meridian.

The ACC further noted that discussions are ongoing with the Prosecutor General’s Office regarding several other major cases connected to the MMPRC scandal.

Widely regarded as the largest embezzlement scandal in Maldivian history, the MMPRC case involved billions of Rufiyaa in state revenue allegedly being diverted into private companies. Investigations later revealed that portions of the funds were used for various political purposes.

Former Vice President Ahmed Adeeb admitted to playing a leading role in the scheme alongside former MMPRC Managing Director Abdulla Ziyath. Both were previously imprisoned in connection with the charges filed against them. 

However, during the final days of the administration of former President Ibrahim Mohamed Solih, both Adeeb and Ziyath were pardoned. As a result, no individuals currently remain in custody in relation to the scandal.

Former President Abdulla Yameen Abdul Gayoom also faced three separate charges linked to the MMPRC scandal. However, those convictions were later overturned by superior courts, which ruled that the charges had not been proven.