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Parliamentary Environment and Climate Change Committee meeting today

‘No action against businesses avoiding environmental fines’

The committee found that cases against shipowners and their agents were being filed together, leading to complications in court.

26 February 2025
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The Maldives is facing a serious environmental crisis as foreign vessels continue to damage its fragile coral reefs without facing proper consequences. Despite being fined millions of rufiyaa for these violations, many shipowners refuse to pay, leaving cases pending in court for years. However, no concrete action has been taken to prevent these shipowners from continuing their business in the country.

The Environment Ministry on Tuesday appeared before the Parliamentary Environment and Climate Change Committee to address concerns over the failure to stop shipowners from operating in the Maldives despite outstanding fines. The committee questioned whether the ministry had held any discussions with the Economic Ministry on how to halt these businesses.

The ministry admitted that no such discussions had taken place.

Maafannu West MP Mohamed Musthafa Ibrahim strongly criticised this inaction, calling it "very degrading." He questioned why businesses that owe significant environmental fines are being given second chances instead of being shut down. According to Musthafa, both the Attorney General’s (AG) Office and the Environment Ministry had previously advised the committee to take measures against these companies. Yet, no steps have been taken to implement these recommendations.

One of the major obstacles to collecting fines is the legal approach taken by authorities. The committee found that cases against shipowners and their agents were being filed together, leading to complications in court. Musthafa argued that the ship's agent should not be held responsible for environmental damage caused by the vessel, as this responsibility lies with the owner. He noted that the AG’s office had filed cases in court without proper legal distinction, further delaying the recovery of fines.

An example discussed in the committee was the case of Mainland Shipping, which was fined MVR 100 million seven years ago for damage caused by a two-vessel crash at K. Fushidhiggaru Lagoon. The company claimed it was unclear why they were required to pay such a large amount when they were merely acting as agents. This confusion has led to prolonged legal battles and non-payment of fines.

In response to these issues, the parliamentary committee passed two key resolutions:

  • The Environment Ministry must clarify why it has not engaged in discussions with the Economic Ministry to stop businesses that fail to pay reef damage fines.

  • The AG’s office must explain why it consolidates charges against ship agents and shipowners in cases of non-payment, rather than holding the actual perpetrators accountable.

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