News Desk
Deputy Speaker Ahmed Nazim’s remarks now carry heightened urgency:
“There are more smuggled cigarettes than cigarettes imported with duty. The same is true of vape. Vape is available. There are social media accounts selling it.”
The Exotic and Hawks cases show that this isn’t just a policy failure—it’s a multi-layered breach of public trust, with implications for national security, fiscal integrity, and institutional credibility.
Summary
Following the October 27, 2025 presentation of the 241 Committee’s report on escalating cigarette and vape smuggling, two additional cases—Exotic Enterprises and Hawks Pvt Ltd—have emerged as critical flashpoints. These incidents not only reinforce the Committee’s findings but expose new dimensions of corruption, regulatory loopholes, and political entanglement.
Together, they reveal a pattern of systemic failure across bonded warehouse operations, maritime logistics, and customs enforcement—underscoring the urgency of reform in the wake of the Hulhumalé Port Heist.
Twin Tobacco Scandals Rock Maldives: Exotic Enterprises & The Hawks Under Scrutiny
Two high-profile cigarette smuggling cases—one rooted in bonded warehouse abuse, the other in maritime deception—have exposed deep cracks in the Maldives’ customs enforcement and corporate oversight. Together, the Exotic Enterprises and Hawks Javaahiru boat scandals paint a troubling picture of regulatory vulnerability, political entanglement, and the urgent need for reform.
Case 1: Exotic Enterprises – Warehouse Vanishing Act
What Happened
- Company: Exotic Enterprises
- Violation: 575 cases of Camel Yellow, Manchester Royal Red, and American Legend cigarettes disappeared from a bonded warehouse without customs clearance.
- Duty Owed: MVR 47.2 million (Exotic); MVR 20.7 million (SGM Bonded Warehouse)
- Legal Outcome: Court ruled in absentia—Exotic must pay MVR 47.2 million within 14 days.
Political & Legal Intrigue
- Shareholder Shuffle: Ownership changed hands during the smuggling, including to MP Mohamed Siruhan before his election.
- Fake Branding: Cigarettes were imported under a brand name owned by another company, prompting a court order to halt clearance.
- Parliamentary Oversight: The 241 Committee flagged shareholder transfers to individuals lacking import capacity.
Regulatory Fallout
- Warehouse Location: A private residence in Malé City
- Unauthorized Modifications: Operator began additional works without notifying Customs
- Policy Reform: Government banned bonded warehouses in private buildings; all must now operate under full Customs control.
Case 2: The Hawks – Maritime Smuggling via Javaahiru
What Happened
- Date: October 24–25, 2024
- Contraband: 200 master cartons (2 million sticks) of Manchester cigarettes
- Vessel: M.T. Hawks Javaahiru
- Location: Illegally offloaded at The Hawks’ private boatyard jetty in Thilafushi
Investigations & Allegations
- Criminal Charges: Smuggling (unlisted goods), money laundering
- Company Response: Hawks denied corporate involvement, blamed rogue employees, suspended 14 staff, and launched an internal probe
- Parliamentary Oversight: The 241 Committee is compiling two reports—on corporate complicity and financial transactions.
Current Status (as of October 2025)
- Formal Accusation: Maldives Police Service has officially charged The Hawks with smuggling and money laundering.
- High-Level Summons: Homeland Security Minister Ali Ihusan, Police Commissioner Ali Shujau, and Customs Commissioner Fathimath Dhiyana have been summoned for clarification.
Why These Cases Matter
| Issue | Exotic Enterprises | The Hawks |
| Modus Operandi | Bonded warehouse manipulation | Maritime offloading via private jetty |
| Political Links | Shareholder was an MP | Under parliamentary investigation |
| Regulatory Failure | Weak bonded warehouse oversight | Manifest manipulation, private port access |
| Reform Triggered | Ban on private bonded warehouses | Ongoing review of maritime customs protocols |
| Public Impact | MVR 67.9 million in unpaid duties | 2 million illicit cigarettes in circulation |
Broader Implications
These twin scandals reveal a pattern of:
- Regulatory Loopholes: From dual-lock bonded warehouses in private homes to unmonitored maritime offloading.
- Corporate Denial & Deflection: Both companies blamed internal actors while distancing themselves from direct responsibility.
- Political Sensitivities: The involvement of an MP and high-level government officials underscores the need for independent oversight.
- Policy Momentum: The government has begun tightening customs regulations, but the scale of these cases suggests deeper structural reforms are needed.
