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Govt to settle MVR 174 mln to Dheebaja

Fathmath Shaahunaz
25 November 2019, MVT 21:28
President Ibrahim Mohamed Solih ratifies the Bill on Protection of Whistleblowers. FILE PHOTO/PRESIDENT'S OFFICE
Fathmath Shaahunaz
25 November 2019, MVT 21:28

The government of Maldives decided to reach an out of court settlement with Dheebaja Investment Pvt Ltd, by paying a sum of MVR 174 million to the private company.

The state contracted Dheebaja to provide ferry services in the Northern Province in 2011, during the presidency of former President Mohamed Nasheed. However, after the following administration of President Abdulla Yameen Abdul Gayoom terminated the contract in 2013, Dheebaja filed a lawsuit and won, with the Civil Court ordering the government to pay MVR 348 million to the company as compensation. The Supreme Court upheld the verdict this year.

Following the ruling, the Settlement Committee advised incumbent President Ibrahim Mohamed Solih to negotiate with Dheebaja and settle on a sum of MVR 174 million as compensation.

Spokesperson for the President's Office, Ibrahim Hood on Monday disclosed that the president decided to settle the matter as per the committee's advice. While the payment is yet to be made, he stated that the government will establish a policy to follow regarding the settlement.

Meanwhile, the case to execute Dheebaja's court verdict is currently underway at the Civil Court. It would be dropped should both parties come to an agreement.

The Civil Court's order for the government to pay MVR 348 million to Dheebaja was initially overthrown by the High Court. However, the Supreme Court annulled the High Court's decision, since the latter had accepted the appeal after the allocated period expired.

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