The Parliament's Public Finance Committee on Monday approved to look into the case of Noomadi Resorts and Residences, and identify those negligent in the case.
The former government terminated an agreement with Noomadi Resorts and Residences, due to which the company filed a claim for US$155 million as compensation, and other arbitration charges at the Permanent Court of Arbitration in The Hague, Netherlands.
The current government reached a settlement agreement with the company on August 25. According to the out-of-court settlement, the government will pay the company US$ 55 million as compensation.
During a committee meeting held Monday, Hanimaadhoo MP Abdul Ghafoor Moosa proposed to take action against those negligent in the case, including former Housing MInister Dr. Mohamed Muizzu who is accused of giving witness statement against the State.
The proposition which was seconded by MP Yaugoob Abdulla was approved with the agreement of all members present at the committee.
The committee also decided to lodge a complaint against Dr. Muizzu at Maldives Police Service for providing false information to the committee.
Noomadi Resorts and Residences was contracted to construct 600 housing units under the private villa model on January 20, 2011, and to develop 500 housing units, Police Academy Phase I, and sewerage systems in three islands on May 30, 2013. Both agreements were terminated by the previous government, claiming that the company had violated the terms of the contract. However, the company denied the claim.
The decision to settle the arbitration issues out of court was made after extensive discussion with the settlement committee established by President Ibrahim Mohamd Solih.
