Parliament of Maldives has approved the resolution to set a maximum monetary compensation value the state can award under settlement agreements resulting from contract violations and terminations.
The resolution submitted by Parliamentarian Hisaan Hussain was approved with 62 votes, along with the changes to the resolution proposed by the Parliamentary Committee on Public Accounts.
During the sitting, all parliamentarians raised concern over the huge amounts the government has to bear as settlement fees. The resolution proposed by parliamentarian Hisaan requires all contracts to include a clause indicating the highest financial values in compensation in case a contract is terminated. The resolution also requires Minister of Finance to amend the Public Accounts Act to accommodate the changes and the Auditor General’s Office to include the clause in contracts.
Statistics from Ministry of Finance indicate over USD 64 million have been paid by the government as settlement.