AG Calls for Action Over MVR 64 Million Compensation to Dheebaja

Auditor General Hussain Niyazy has urged the government to take action regarding the MVR 64 million compensation paid to Dheebaja Investment Company, highlighting the need for accountability for those involved in the agreement’s finalisation without proper due diligence.

Niyazy remarked that the out-of-court settlement, made under the previous administration, was harmful to the state. The decision resulted in a payment of MVR 12 million to Dheebaja last September despite inadequate verification of the expenses related to the compensation.

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The dispute originated from a ferry service contract signed in 2011, which was cancelled in 2013 by the Maldivian Democratic Party (MDP) government. In 2019, the Supreme Court initially ruled for a compensation amount of MVR 348 million, which the government later negotiated to an out-of-court settlement of MVR 174 million before seeking further review.

In 2022, the Supreme Court deemed the agreement cancellation illegal and returned the matter to the lower court for a compensation determination. However, while the case remained in the Civil Court, the government settled for MVR 64 million.

The Auditor General’s report criticises the agreement, noting that MVR 11 million of the claimed expenses was not verified. Additionally, it was reported that Dheebaja profited from the sale of Raa Atoll Kudakurathu for MVR 65 million, which they had obtained under a 2011 sublease from the government. The report concludes that, following this sale, the government is not obligated to pay any further compensation to Dheebaja.

Niyazi has reiterated the need for the government to recover the payments and ensure accountability for the individuals involved in the agreement’s execution.