Island Aviation seeks to freeze MDP accounts over unpaid flight dues

Island Aviation, the operator of the national airline Maldivian, has filed a civil suit to freeze the accounts of the Maldivian Democratic Party (MDP) for failing to pay for chartered flights taken during the 2023 presidential election campaign.

In July, the Civil Court ordered the MDP to pay MVR 3.6 million, part of an outstanding MVR 5.6 million owed to Island Aviation, within one month. However, the payment has not yet been made.

As a result, Island Aviation has requested the court to deduct the unpaid amount directly from the state budget allocated to the MDP.

Last month, the Elections Commission confirmed that it had disbursed MVR 8.45 million to the MDP as part of its annual budget allocation to political parties with more than 10,000 registered members. The Civil Court issued a notice to the MDP regarding the case earlier this evening.

Island Aviation Managing Director Ibrahim Iyas told Mihaaru News that the case has been ongoing in court for some time, and that enforcement action was taken only because the party failed to pay within the deadline set by the court.

“The issue of the unpaid amount has been in court for a long time. The court ruled that the money must be paid. Enforcement was initiated because the 30-day deadline passed without payment, nothing more,” he said.

He added that the legal move was purely procedural and coincidental with the large rally that the MDP is set to hold in Malé tomorrow night, emphasizing that it is not an attempt to hinder the party.

Island Aviation and the MDP had previously signed a settlement agreement in 2023 to repay the MVR 5.6 million owed for chartered campaign flights, with payments scheduled every six months until 2027. However, after the MDP failed to make the agreed payments this year, Island Aviation terminated the agreement and decided to recover the full amount at once.

The Civil Court had earlier acknowledged that the MDP had paid MVR 2 million of the total amount owed. The remaining MVR 3.6 million was reportedly delayed due to a hold-up in receiving funds from the state. The MDP had requested an extension to settle the balance, but Island Aviation declined.

The court subsequently canceled the original settlement agreement and ordered the MDP to pay the remaining MVR 3.6 million within 30 days from July 29. With the deadline now passed and the payment still pending, Island Aviation has returned to court to enforce the judgment.