Decision on compensation pacts before Dec, govt says

Government is set to review controversial settlement agreements signed under former President Ibrahim Mohamed Solih’s administration, according to Attorney General Ahmed Usham.

Speaking at a press conference held at the President’s Office Saturday, Usham revealed that decisions on these agreements will be finalised by the end of November. 

The settlement agreements under scrutiny involve compensation paid by the previous administration to private companies. A Settlement Committee, previously responsible for resolving disputes between the government and private sector entities, was dissolved by the new administration. 

The committee had suspended 10 settlement agreements and initiated the process to cancel them. Usham disclosed that compensation totalling over MVR 1 billion had been awarded for lands, islands, and lagoons, which the current government believes were handled unlawfully.  

“We are carefully reviewing each agreement to identify irregularities,” Usham said. "It is difficult to set an exact date, but we expect to reach a conclusion by the end of November."

He stressed the administration’s intent to rectify these issues through legal channels, saying: "After completing the legal procedures, everything that was done improperly will be reversed."

The press conference also addressed the stalled Asset Recovery Bill, which aims to recover state assets sold at undervalued prices under previous governments. Usham confirmed that the Anti-Corruption Commission (ACC) had been working on a draft of the bill, but no progress had been made to submit it to parliament.  

The bill is part of the government’s broader effort to reclaim islands, lagoons, and other public assets transferred to private parties through questionable deals.  

"Previous governments have handed out state assets at unjustifiably low prices," Usham stated. 

"The Asset Recovery Act will ensure that the state receives fair compensation for these assets.”

Due to delays by the ACC, Usham announced that his office has now taken the lead in drafting the bill.

“We have waited long enough,” Usham said. "I asked the ACC for their draft, but since it wasn’t provided, we are preparing the bill ourselves."  

He assured that the draft would be ready for submission during the first session of parliament next year.

"The bill will resolve the issue of public assets being sold cheaply and restore their rightful value to the state," Usham added.