The government of the Maldives has begun implementing the new policy of providing state compensation.
The President’s Office formulated the policy after the Parliamentary Committee on Public Accounts reviewed the white paper published by Anti-Corruption Commission (ACC) on providing compensation for damages incurred regarding government projects. The committee recommended the government establish a policy on providing state compensation, following the review.
The President’s Office formulated the policy to provide compensation to individuals who unjustly incurred financial losses due to unlawful actions taken after the government made agreements with private parties. It also aims to provide compensation in a way that does not place a financial burden on the state.
Individuals who seek compensation are required to submit the case to the relevant ministry within one month. The case should be concerning the termination of an agreement, actions taken that violate the agreement, or the failure to provide official approval. The government will evaluate any case regarding an agreement made between August 7, 2008, and the date the policy was implemented, and provide compensation if required.
The policy also defines cases in which the government should settle out of court, in order to reduce the financial loss in cases where proceeding with a trial would lead to the court potentially ordering the government to pay a larger amount in compensation. It states that the government can settle out of court in cases where the relevant ministry was at fault for taking unlawful action that led to the financial loss of the individual. If the case is filed at the ministry, the ministry is required to review the case and send it to the relevant committee within 90 days.
Furthermore, the government is required to form a committee consisting of a representative of the President’s Office, the Ministry of Finance, the Ministry of National Planning, Housing and Infrastructure, the Ministry of Economic Development, the Ministry of Tourism, the Ministry of Fisheries, Marine Resources and Agriculture, and the Ministry of Environment, Climate Change, and Technology.