Naifaru MP Ahmed Shiyam has stated that a day would come that the actions of the settlement committee formed by President Ibrahim Mohamed Solih will be investigated. The MP said that, referring to the large amounts of compensations the government is paying to the companies on the recommendations of the settlement committee.
MP Shiyam, who is also vice president of the main-opposition, Progressive Party of the Maldives (PPM) said, with the “generosity” of President Ibrahim Mohamed Solih, MVR 92 million that Noomadi Resorts and Residents have to pay back is pardoned. Shiyam was referring to the MVR 92 million the Maldives National Defense Force’s (MNDF) company SIFCO paid to Noomadi as advance payment for the development of flats for MNDF officers in Hulhumale’. In the Audit report that was conducted on the issue of Noomadi, it noted that Noomadi has to payback MVR 92 million to SIFCO.
Shiyam said there would be a time when the citizens of the Maldives will pursue legal action against the committee members.
“That Settlement Committee will be sued by the public, In Sha Allah. The public’s accounts are being exhausted in day-light. Is this “zero-tolerance” for corruption?," questioned Shiyam.
Noomadi Resorts and Residences was contracted to construct 700 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. However, the agreements were terminated by the previous government, claiming that the company had violated the terms of the contract. The company denied the claim.
The termination led to the company filing a claim for US$155 million as compensation, and other arbitration charges at the Permanent Court of Arbitration in The Hague, Netherlands. When the arbitration case was first filed on December 11, 2017, former Housing Minister Dr Muizzu took part in the discussions and decisions were made by the state on how to handle the case with the involvement of Dr Muizzu in the capacity of the government's housing minister.
After the minister lost his position on the government on November 17, 2018, Dr Muizzu on 14 June 2019 gave a statement as a witness against the state produced by Noomadi in their arbitration claim. His statement against the state contradicted his previous stance on the issue while he was minister, and damaged the state's defence.
The current government reached a settlement agreement with the company on August 25 2019. According to the out-of-court settlement, the government will pay the company US$ 55 million as compensation. The first payment of US$ 27.5 million was paid by the government on 5 September 2019. The remaining half of the total payment has now been completed.
In addition, to the Noomadi case, the government has been paying large amounts of compensation to many other companies. For each of these companies, the government has been paying compensations based on the recommendations of the settlement committee and out of court agreements.
