AG says no loss to state from renegotiated Bastinet agreement

Attorney General Ahmed Usham said on Wednesday that he does not believe the state will suffer financial loss from the renegotiated agreement with Malaysia’s Bastinet to develop and operate the expatriate management system.

The agreement was originally signed in 2016 during the administration of former President Abdulla Yameen. The 15-year contract was discontinued in 2019 after the government of former President Ibrahim Mohamed Solih halted the recruitment of Bangladeshi workers.

The current administration decided to renew the agreement following claims for compensation by Bastinet. However, leaders of the Maldivian Democratic Party (MDP) and opposition MPs have criticised the decision, alleging irregularities in the deal.

Responding to a question from Utheemu MP Dr Ahmed Shamheed in Parliament, Usham said the case was referred to the Attorney General’s Office in 2023, five years after the suspension of the agreement. He stated that no financial transactions had taken place between the government and Bastinet during that period.

Usham said the Ministry of Homeland Security and Immigration was advised to consult relevant agencies and submit a proposal to the Economic Council to resolve the matter. He added that the decision to redraft the agreement was made after assessing that it would not cause harm to the state.

“I advised that relevant agencies should consult and make a decision. Therefore, I do not believe the state will incur loss if the agreement is redrafted following due consultation,” Usham said.

He added that the state risked paying significant compensation if the matter were taken to international arbitration.

Home Minister Ali Ihsan also stated that the new agreement with Bastinet was aimed at resolving obligations arising from the previous government’s actions.

According to the ministry, expatriates in the Maldives are currently charged MVR 6,200 annually, including a MVR 2,000 quota fee and a MVR 350 monthly work permit fee. Under the new agreement, Bastinet will receive MVR 1,542 from each foreign worker’s payment, while MVR 4,658 will go to the state.

Ihsan said the arrangement would not negatively affect state revenue, as the company would assume operational costs related to the system.

He added that the current expatriate database lists 221,231 active work permits, from which the government earns MVR 685 million annually. The new system, which will integrate biometric and payment-tracking features, is expected to increase annual state revenue to MVR 927 million.

The new expatriate management system is scheduled for launch in February.