Minister of Finance Ibrahim Ameer has revealed the settlements to Noomadi Resorts and Residences had to be made due to negligence of the former administration.
Speaking at the Parliamentary Committee on Public Accounts, Finance Minister Ameer said the settlement was the only option it had as the matter had been forwarded to an international arbitration centre. The minister said the settlement after investigations at the arbitration centre would probably have been more. He further said the settlement was made to save the state from incurring a more significant loss.
At the committee, the finance minister said former ministers went to courts and testified in favour of Noomadi, resulting in a huge compensation amount the state has to bear. He said the names of former ministers who testified at courts will be revealed by the Attorney General's Office.
Noomadi Resorts and Residences is a local company contracted to develop 1,100 housing units on multiple islands.
However, the contracts were later terminated by the former administration. The decision to terminate the contracts was first submitted to Singapore International Arbitration Centre in 2017.
Noomadi latter submitted the matter to Permanent Court of Arbitration to claim USD 148 million and other costs of arbitration for the loss the company suffered.
Ministry of Housing and Urban Development signed the settlement agreement on August 25, 2019 and Ministry of Finance has now paid the settlement amount of USD 55 million agreed by the state and Noomadi.
Senior officials of the former administration have heavily criticised the administration of President Ibrahim Mohamed Solih for having made the settlement.
The parliamentary committee has now decided to summon the former Housing Minister Dr Mohamed Muizzu to investigate the reasons for terminating the contract with Noomadi. Chair of the Committee Mohamed Nashiz said the statements given at the arbitration by the former minister are being evaluated.