Government Halts Compensation Decisions Citing Irregularities

A settlement committee established by the previous administration has sparked controversy after deciding to grant over MVR 1 billion (approximately USD 65 million) in compensation payouts to various parties. The move has raised concerns about potential misuse of public funds and a lack of transparency.

The committee, originally formed to address claims stemming from agreements cancelled under former President Abdulla Yameen, was dissolved by the current administration. However, prior to its dissolution, the committee had awarded over MVR 225 million in direct compensation and an additional MVR 1 billion in assets and funds.

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Attorney General Ahmed Usham, during a press conference, expressed concerns that some settlements were made despite pending court cases or a low likelihood of the state being held liable. He also revealed that several decisions were made in direct contradiction to the Auditor General’s recommendations.

Usham further announced that 10 outstanding cases under the committee’s review had been halted, with instructions to the Ministries of Finance and Tourism to suspend any related actions. These cases will now be referred to the Auditor General for an independent assessment of the settlements’ fairness.

The Attorney General’s Office will determine future actions pending the outcome of the assessment and their own review.

Originally established in 2019, the settlement committee was formed under former President Ibrahim Mohamed Solih to redress alleged wrongful cancellations of agreements under his predecessor. However, the committee faced criticism from the Anti-Corruption Commission and was investigated by Parliament, which urged the government to ensure integrity in such state project compensations.

The recent revelations have cast a shadow over the committee’s activities and raised questions about the accountability and judicious use of public funds in the Maldives.

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