AG declares 9 compensation pacts from previous govt invalid
Three cases involved direct compensation payments, totaling MVR 95.1 million.
Attorney General Ahmed Usham on Thhursday ordered state agencies not to implement nine compensation agreements signed during the previous administration of the Maldivian Democratic Party (MDP), citing constitutional and legal violations.
The Attorney General’s (AG) Office issued a statement following an investigation requested by President Mohamed Muizzu into the legitimacy of these agreements. The investigation focused on the compensation cases decided under the previous government’s controversial compensation rule.
The AG's Office stated that the rule under which these agreements were executed:
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Was formulated in violation of the Maldives Constitution and other relevant laws.
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Did not obtain the mandatory approval of the Auditor General.
As a result, the AG’s Office has determined the agreements are “invalid, unenforceable, and lack legal status.”
Three cases involved direct compensation payments, totalilng MVR 95.1 million:
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Dheebaja: MVR 64 million
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Umet Construction: MVR 26 million
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Amson & Food Beverages: MVR 5.1 million
The remaining agreements involved rent waivers, penalty waivers, and lease renewals, including high-profile cases such as:
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Leisure Beach Ferry.: Renewal of a lease agreement for a port.
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Exotic Properties: Transfer of an island lease from N. Raafushi to N. Ekulhivaru with a 99-year term and forgiveness of past dues.
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Clear Sands: Leasing of Th. Vanbandhi Kani and Fushi islands for 50 years with rent waivers and extended development deadlines.
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Blue Lagoon: Compensation involving AA. Madoogali with an alternative lease of R. Villingili, Thaavaa, and Orimasvaru for 50 years.
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AAA Company: Rent and penalty waivers for Hdh. Hodaafushi, with a new 50-year lease agreement.
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JH Resorts: 50-year lease of Hdh. Kudamuraidhoo, including rent and penalty exemptions.
The Finance Committee of the People’s Majlis has instructed the AG’s Office to:
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Cancel all invalid agreements.
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Recover any compensation paid under these agreements.
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Investigate former President Ibrahim Mohamed Solih and then-Economic Minister Fayyaz Ismail for their roles in the approval of these agreements.
The AG’s statement emphasised that the agreements cannot be enforced without proper legal foundation and that necessary legal actions will be pursued to safeguard state interests.
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