A Maldives court has ordered the government to return a lagoon leased to a private company which was appropriated after the largest graft scandal in the archipelago's history.
Maldives Media and PR Corporation (MMPRC) had mediated the leasing of over 59 different tourist hotels, resorts and yacht marinas out of which 53 had been leased through an agreement with the tourism ministry.
The official audit report into the scandal, had revealed that over USD79 million had been embezzled through the state tourism promotion company.
The lagoon located in the capital Kaafu Atoll had been leased to Sea House Resorts by MMPRC but was later appropriated.
The government had claimed that the acquisition cost amounting to USD1.5 million had not been paid by Sea House prompting the annulment of the contract.
However, Sea House had challenged the decision in court arguing that it had duly paid the fee to MMPRC which is believed to have been part of the funds embezzled.
The Civil Court on Tuesday had ruled in favour of Sea House Resorts saying that the company could not be held liable for the missing funds as it had paid the fees in accordance with the then regulations.
The payment had been received by the now jailed MMPRC chief Abdulla Ziyath.
The funds received by MMPRC was distributed through a private company with strong links to president Yameen’s former deputy Ahmed Adheeb Abdul Ghafoor.
Both Ziyath and the former VP are serving prison sentences over the graft.
