Court orders FAM to pay MVR 52m for stadium
The South Korean company had been contracted to develop two football stadiums—one in Hulhumalé and the other in Vilimalé.
The Civil Court has ruled that the Football Association of Maldives (FAM) must pay MVR 52 million (approximately USD 3.38 million) to a South Korean company for additional construction works done on two football stadiums in the Malé region.
The verdict was delivered following a lawsuit filed by the company over non-payment for services rendered under an agreement signed on 20th March 2021.
The South Korean company had been contracted to develop two football stadiums—one in Hulhumalé and the other in Vilimalé. Along with the primary construction, additional works were completed on both stadiums.
Despite the completion of these projects, the company alleged that FAM had not made payments as outlined in the agreement.
During the construction process, both parties entered into negotiations, and FAM agreed to certain concessions regarding the project.
However, the South Korean company claimed that these agreed-upon concessions had not been honoured, prompting them to file a lawsuit in the Civil Court.
On Thursday, the Civil Court ruled that FAM must pay MVR 52 million to the company for the construction and additional works carried out on the two stadiums.
The ruling provided:
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The plaintiff initially sought a total of USD 5.91 million, including legal fees and damages. However, the court rejected these claims, citing a lack of evidence to support the legal fees and ruling that there was no provision in the agreement allowing for damages.
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The court did confirm that FAM owed USD 3.38 million (MVR 51,913,700) for the construction and reconstruction of the stadiums and ordered FAM to pay this amount within one month.
This is not the first case involving FAM’s financial obligations. Several lawsuits related to FAM’s failure to honour agreements have been filed in the Civil Court, with some cases already resulting in payment orders against the association.
In addition to these financial disputes, FAM’s former president, Bassam Adeel Jaleel, has been charged with money laundering. The police are also investigating several other cases involving FAM’s financial mismanagement.
