Shahid warns lack of transparency over Ras Malé deal could harm foreign relations

Former Foreign Minister Abdulla Shahid has called on the government to disclose the full agreement with UAE-based Eagle Hills for the proposed USD 20 billion waterfront marina development in Ras Malé, warning that a lack of transparency could affect the Maldives’ relations with friendly countries.

Shahid made the remarks on Saturday night at the closing session of the opposition Maldivian Democratic Party’s (MDP) congress.

The government’s agreement with Eagle Hills has faced criticism from opposition figures over the allocation of a large area of Ras Malé for the development. A constitutional case has also been filed at the Supreme Court challenging the decision to allocate 500 hectares of land to Eagle Hills for 99 years.

The government has maintained that the land has not been transferred as freehold property and is instead being provided under a lease arrangement.

According to information released by Eagle Hills, properties developed under the project would be offered on 99-year leaseholds. The arrangement has prompted calls from opposition politicians and others for the government to disclose the agreement.

Shahid said the absence of the agreement from the public domain had led to speculation over its terms.

“There is no transparency or good governance in today’s government, so no one knows what is in the agreement and what is not,” Shahid said. “The public is therefore left to speculate. The bitter consequence could once again be a deterioration in relations with another friendly country.”

Shahid, who previously served as President of the 76th Session of the United Nations General Assembly, said countries are increasingly interconnected and that diplomatic relations have a direct bearing on economic affairs.

He said any deterioration in those relationships could have consequences for the economy of a small country such as the Maldives, with businesses and the public ultimately bearing the impact.

“I call again tonight for the agreements made between the Maldivian state and major foreign companies, including Ras Malé, to be disclosed rather than kept secret,” Shahid said. “Public confidence will increase with greater transparency.”

Former President Mohamed Nasheed has also called for the Eagle Hills contract to be submitted to Parliament and made public, saying the agreement had not been disclosed.

Shahid also criticised the handling of the Fushidhiggaru lagoon reclamation and Ras Malé development, alleging that there had been a lack of clarity over the reclamation costs, the naming of the lagoon, the allocation of the land and the terms of the agreement.

He said the Maldives’ geographical location in the Indian Ocean was one of the country’s most important strategic assets and should be managed carefully in its foreign relations.

According to Shahid, the Maldives must maintain close relations with its neighbours while protecting its independence and sovereignty amid geopolitical competition in the Indian Ocean.

He said the country’s development should involve all nations with which the Maldives maintains relations, without allowing geopolitical rivalries in the Indian Ocean to create divisions.

Shahid said the MDP should pursue such an approach as part of its vision for the country’s future.