Coalition not to escape $24m debt; capable to pay: MDA

Maldives Development Alliance (MDA) said on Friday that they did not decide to back President Ibrahim Mohamed Solih in coalition to evade paying USD 24 million that its founder Ahmed Siyam Mohamed's Sun Travels company owes to Hilton, and that the company and its leader has the capability to pay the amount.

MDA on Friday decided to support President Solih in the September 9 presidential election. While the decision was taken by the party, the opposition PPM had also invited the MDA to form an alliance with them.

Some have alleged that Meedhoo MP Siyam decided to back President Solih in order to save himself from the USD 24 million his company owes Hilton.

In response to a question from Atoll Times at a press conference held by MDA at Champa Central Hotel on Friday to announce the decision to form an alliance with President Solih, party's deputy leader Aishath Rafia said that the decision to form the coalition was made for the benefit of the people and not to evade the USD 24 million due to Hilton under any circumstances.

"Are we the sort incapable of giving 24 million to Hilton? The largest luxury resorts in the Maldives are among our group of resorts. So, can't our owner do that, that's my question to the people. We don't have to sell our souls for 24 million. It's not our level. We have that much assets," Rafia said.

Rafia, who also holds a position at Sun Travels company, said such statements made by the public were "contradictory". It was, she described, like a story you tell children.

"Our leader, our president, is the kind of person that even every child of our country will be proud of today... Our group pays the highest taxes in the country. So nobody ca accuse us about owing Hilton. If you look at the amount we pay only for taxes, you will know that this is not a figure that we can't meet," Rafia said.

"Shouldn't we have sold a resort [to pay the money to Hilton]. The resort is actually way more money. Hilton alone [the company's] value is at least USD 175 million. So it's like children’s tales."

During former President Abdulla Yameen Abdul Gayoom's administration, the MDA was a coalition partner in the government, and the government gave a loan of USD 127.5 million from China's Exim Bank to a Siyam-based company with a sovereign guarantee. Rafia also hit back at the public for criticising the move.

"This nonsensical gossip is being spread because Sun Siyam might rule this country. They are talking about sovereign guarantees because Sun Siyam can rule this country," she said.

"No bank can give such a huge loan to anyone without financial capability," Rafia said. Siyam's company was given such a huge loan, she said, because of that capability.

Ali Mauroof, deputy leader of MDA, who attended the press conference and also holds a senior position in Siyam's company, said:

On August 17, 2015, a Singapore-based arbitration panel ordered Sun Travels to pay USD 24 million (MVR 368 million) to Hilton for cancelling its contract with Hilton to operate N. Irufushi resort developed by Siyam's company. On February 9, the Civil Court accepted Singapore arbitration's ruling and ordered the company to pay the amount to the court within 14 days.