Minister of Finance Ibrahim Ameer has revealed the state has not yet paid any amount as part of the settlement agreed with Dheebaja Investment Private Limited.
Speaking at the Parliamentary Committee on Public Accounts, Finance Minister Ameer said Dheebaja case is amongst the biggest settlements the state has to bear.
Ministry of Finance is negotiating with Dheebaja to reduce the amount as Supreme Court had issued a verdict against the state, requiring it to settle the payment which amounts to USD 22.530 million. The only option available is to negotiate with the Dheebaja to reduce loss to the state, according to the minister.
In response to questions of parliamentarians, Minister Ameer said the only settlement made by the administration so far was for World Link Travels (WLT) Private Limited due to the illegal termination of the contract by the state.
Dheebaja was contracted to operate ferries in the North Province during the administration of President Mohamed Nasheed, while the agreement was terminated during the presidency of President Dr Mohamed Waheed Hassan.
In 2014, Civil Court of Maldives ordered the state to pay compensation for the losses faced by the company. However, High Court of Maldives overturned the order which was again overturned by the Supreme Court of Maldives stating the Prosecutor General's Office appealed the case after the appeal period expired. Therefore, the state was ordered to pay the settlement fees to Dheebaja by the Supreme Court.
Dheebaja was represented at the court by the law firm of former Parliamentarian Alhan Fahmy. The agreement signed between Dheebaja and law firm stipulates 50% of the settlement amount must be paid to the law firm as a success fee.
Meanwhile, WLT was contracted to develop resort islands which was later terminated without awarding the islands. The government paid USD 5.6 million to WLT, a company partly owned by Jumhooree Party leader Qasim Ibrahim's Villa conglomerate.