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Tourism Minister Abdulla Mausoom during Tuesday's parliament sitting. Photo/Majlis

Bodufinolhu talks not progressing: Mausoom

The government and the company are unable to come to an agreement on the amount to be paid as compensation.

14 February 2023

By Mariyam Umna Ismail

Tourism minister Dr Abdulla Mausoom said on Tuesday that the negotiations to re-possessing the island of Bodufinolhu in Laamu atoll, which had been leased to a local company for developing as a training resort, have "not continued" and questioned whether an out-of-court settlement can be found.

In 2008, the government awarded the development of a resort for tourism in Bodufinolhu to Premier Equity, which is owned by former Male Mayor Adam Manik (Sarang Adam Manik) and still other Maldivian businessmen. Thus:

  • The island was handed over for a period of 25 years 4.6 hectares of land in Bodufinolhu awarded to the company for development

Gan MP Mohamed Wisam met the minister several times and summoned the minister to the parliament for questioning. Mausoom also came to parliament to respond to a question raised by Visam on the project.

"Will the company assigned now go ahead with the project? If it does not go ahead, what is the ministry's efforts to separate the area from the company entrusted with the construction of the training school and hand it over to a buyer for re-construction of Bodufinolhu?", Visam asked the minister.

Speaking at an earlier meeting on the Badafinolhu project, Mausoom had said that even if the agreement did not expire, it would be terminated and the company would be compensated.

Replying to the question by Visam, Mausoom said the government's efforts to resolve the issue of Badafinolhu project have not made much headway. 

  • A case has been filed in the court for non-functioning of the area allotted to Premier Equity

  • Talks are underway outside the court to find an early solution 

  • The government and the company are unable to come to an agreement on the amount to be paid as compensation

  • Questions are being raised as to whether an out-of-court settlement can be found

In the second opportunity that Visam got to ask, he asked if the ministry was looking for more ways to resolve the issue when there was little hope of an out-of-court settlement. Replying to the question, Mausoom said the company and the government were now stuck in the negotiating process.

"We are stuck in our discussions. I can't move forward. It's up to us to see if we're going to separate it, the USD 2.7 million the company paid to the state to compensate for it, how to make changes," Mausoom said.

Maafannu Central MP Ibrahim Rasheed, who questioned the minister after Visam, asked for the minister's opinion on the company's decision to compensate the government.

Mausoom said the delay in the project was a big loss to the government as well as the people of the area. Thus:

  • Airports across the country are being developed and tourist beds need to be developed to ensure that flights are fast-tracked at affordable rates

  • Since this is not the case, there will be no economic activity

  • The state is not getting its due taxes

  • New employment opportunities are not created

He said the government was also considering seeking compensation for the losses.

"We have to get something from the next part of the agreement, for the state. We have to work for the welfare of the people. What I thought was trying to get liquidated damage for us. So, we will continue to do so," Mausoom said.

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