In a case that has spanned over a decade, Dheebaja’s struggle for compensation from the Government of Maldives remains an unresolved saga. The dispute, stemming from a 2010 agreement, highlights longstanding issues in contract enforcement and governance.
Back in 2010, during President Mohamed Nasheed’s administration, a vision to improve the nation’s transport networks led to the signing of an agreement between Dheebaja Investment Pvt. Ltd., on 1st February 2010. Dheebaja was chosen through a competitive bidding process to establish a transport network (ferry services) in Noonu, Raa, Baa, and Lhaviyani Atoll. Dheebaja was tasked with developing services in these specific atolls, but the agreement also mandated the government to provide certain lands to support the company’s operations.
However, following the resignation of President Nasheed in February 2012, the subsequent administration under President Dr. Mohamed Waheed Hassan Manik terminated the contract on 1st May 2013. The government claimed that Dheebaja had failed to provide adequate services, leading to what has since become a protracted legal battle. Dheebaja challenged that the government had breached the agreement by not handing over the lands necessary for operations, which hampered their ability to secure funds and deliver services fully.
The government and Dheebaja were unable to reconcile their differences and Raa Kudakurathu was rescinded from the company. As a consequence, Dheebaja filed a civil lawsuit in 2013, seeking compensation alleging that the company suffered irreparable losses due to the termination of the contract. The Civil Court of Maldives ruled in favor of Dheebaja for the incurred losses with a staggering compensation of MVR 348 million, a decision which marked the beginning of a decade-long legal battle to secure those funds.
On 9th October 2022, the Supreme Court provided a definitive ruling, confirming that the government had indeed wrongly terminated the agreement. However, it directed Dheebaja to return to the Civil Court to review the compensation amount. Following the Supreme Court ruling, on 13th December 2022, the company filed a motion in the Civil Court for the reconsideration of the compensation amount.
Following the announcement of a revised compensation policy by President Ibrahim Mohamed Solih's administration on 27th December 2022, the company then decided to submit its case to the Ministry of Economic Development. After much negotiation and dialogue with the Settlement Committee and Economic Council, in August 2023, a revised out-of-court compensation agreement was eventually reached, setting Dheebaja’s compensation at MVR 64 million. Although Dheebaja received an initial tranche of MVR 12.8 million, the government failed to disburse the remaining MVR 51.2 million, prompting Dheebaja to return to court in January 2024.
The Sisyphean task for Dheebaja resumed, however, the case did not progress due to the absence of lawyers from the Attorney General's Office to the last hearing which was scheduled for 23rd October 2024.
Adding to the complexity, the Auditor General’s Office later conducted an audit upon the request from the Attorney General on 24th August 2024, that questioned the legitimacy of the compensation agreement. The report published by the Auditor General on 24th October 2024 recommended both punitive action against the individuals involved and the recovery of the MVR 12.8 million already disbursed to Dheebaja. The incumbent Auditor General Mr. Hussain Niyazi, who was appointed in 2021, has remained silent on the case previously.
Today, Dheebaja’s case remains in a state of deadlock. While the company has a civil court judgment and Supreme Court ruling in its favor, bureaucratic delays and government inaction have left the issue unresolved. The Auditor General’s report has introduced new challenges, further complicating an already intricate legal landscape.
With Dheebaja still awaiting fair compensation, the case highlights deeper issues within the Maldivian judicial and administrative systems. For Dheebaja, the fight is not only about financial redress but also about seeking justice in a system where delays and debates continue to hold sway over progress.
