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Maldives to pay USD15 mln to Malaysia firm over border control contract

Fathmath Shaahunaz
21 December 2016, MVT 10:38
Passengers at the Immigration counter in INIA. PHOTO/IMMIGRATION
Fathmath Shaahunaz
21 December 2016, MVT 10:38

Singapore International Arbitration Centre has ruled that the Maldives government’s termination of its contract with Nexbis of Malaysia, to establish a border control system in the archipelago, was a regulations breach and ordered the government to pay USD 15 million to Nexbis as compensation.

Mihaaru understands that Singapore Arbitration read its verdict a few days ago, though the Maldives government is yet to comment on the matter.

Nexbis had filed for USD 269 million as compensation over the broken contract. However, the arbitration had settled on USD 15 million instead.

Deputy Attorney General Ahmed Usham said they are currently reviewing arbitration’s verdict.

The government halted use of the border control system established by Nexbis in 2013. Currently, border control is managed jointly by two systems. The Personal Identification Secure Comparison and Evaluation (PISCES) border management tool was established with free aid from the United States, and is used especially for foreigners that arrive and depart from the Maldives. Another German system is used for locals.

The final verdict over the Nexbis contract was heralded by Singapore Arbitration’s order for the Maldives government to pay USD 271 million to GMR Group of India over breaking the contract awarding operations of Ibrahim Nasir International Airport (INIA) to GMR. The government has already settled the compensation with GMR in full.

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