- Sea Life Maldives was given a contract to construct a total of 80 ‘luxury’ housing unit in 2011
- It was terminated after the island where the units were to be constructed refused to provide land
- Sea Life Maldives had spent over MVR 53 million on developing the units before the contract was terminated
Leaked copies of a settlement agreement between the government and privately-run Sea Life Maldives, according to which the former is to pay MVR 185 million as compensation for having prematurely terminated a contract.
Sea Life Maldives was given a contract to construct a total of 80 ‘luxury’ housing unit in 2011, although the location of said housing units is yet unclear. Compensation for losses that Sea Life Maldives sustained due to said termination was agreed upon on 26th February, this year.
The contract was terminated, according to the settlement, because the local government council of Thinadhoo island in Vaavu Atoll had refused to provide land for it. This was after the company had already spent about MVR 54 million.
The settlement agreement bears the signatures of Sea Life Maldives’ Managing Director Ahmed Moosa Mohamed and deputy minister at the Housing Ministry, Ibrahim Nazim.
The documents leaked along side the agreement indicate that the Finance Ministry has been asked to provide funds to pay off the sum, divided into 12 payments. The first payment will be MVR 15.4 million, the second will be 30.8 million and the remainder is to be split over 10 payments.
The Housing Ministry has responded to the leak, and deputy minister Ibrahim Nazim has told local media outlets that the government does not owe any money to Sea Life Maldives and that the agreement was terminated lawfully.
Full details are available at the link below:
Source URL: Google News