Decision to seize Minaavaru due to agreement breach: Ministry

Ministry of Agriculture has issued a notice to Sun Travels, owned by prominent businessman and Meedhoo MP Ahmed Siyam Mohamed, to terminate the lease of Noonu atoll Minaavaru, citing a breach of the lease agreement.

During the previous government, in 2021, it had been decided to take back the island for government use and had announced seeking a party to conduct an evaluation audit on Minaavaru as well.

Although the previous administration under President Ibrahim Mohamed Solih had decided in 2021 to take back the island and announced seeking a party to carry out an evaluation audit, agricultural production for Siyam World and Sun Siyam Irufushi continued on the island.

State Minister at the Ministry of Agriculture and Animal Welfare, Ahmed Hassan Didi, told Mihaaru News that the lease required three main activities to be conducted on the island, including agriculture, processing, and value addition, such as juice production.

However, he said the company had failed to meet these requirements.

“If the clauses in the agreement are not complied with, the government has the power to seize the island. There is no requirement for compensation,” Hassan Didi said.

He said that a 14 day notice to vacate the island had been issued which is the maximum period allowed under the terms of the lease.

The ministry said it monitored islands leased for long-term agricultural purposes last year and included Minaavaru in its assessments again this year. The latest review found the operations to be non-compliant with the lease agreement.

In a post on X, Mohamed Abbas, deputy leader of Siyam’s Maldives Development Alliance (MDA), criticized the government’s move and claimed there were still eight years remaining on the 25-year contract. He also said the lease was being revoked without compensation.

Minaavaru is not the only island reclaimed from Siyam. The government had earlier taken back Dhaalu atoll Uhdhoo, another island previously leased to for agricultural use.

Siyam’s MDA had been part of the governing coalition in the past, but President Dr Mohamed Muizzu said at a press conference on Saturday that the party is no longer part of the coalition.