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Gov't decides not to waive USD4.5 million fine imposed on Afcons

The Ministry of Environment, Climate Change and Technology has made the decision to not waive the USD4.5 million fine imposed on Afcons Infrastructure Limited for the damages to the Villimale’ reef caused by a bridge construction platform.

The platform ran aground on Villimale’ on August 16, 2022, and caused damage to the reef after its anchor became embedded in the sea floor. The platform was removed from the area on August 27, 2022. The Environmental Protection Agency (EPA) imposed a fine of USD4.5 million on the India-based company under the Environmental Protection and Conservation Act and its regulations.

The ministry made the decision not to waive or reduce the fine after Afcons submitted an appeal in December, last year. The ministry stated that its legal team prepared a report on the issue in Janury with its recommendations after seeking technical advice from the Maldives National University (MNU) Centre for Maritime Studies in May. The institute completed the evaluation and submitted its findings to the ministry in July.

Additionally, the ministry stated that the investigation shows that the contractor had the opportunity to avoid the accident if it had implemented the necessary control measures. Therefore, the ministry found no reason to review and change the penalty imposed by the EPA. The government also considers it important to use the payment to repair the environmental damage. As such, USD973,000 will be deposited to the EPA Environmental Restoration Fund to repair the damage incurred in the Villimale' reef and expand the commission's capabilities.