Court stays USD 3 million payment to South Korean company by FAM

High Court has ordered the Football Association of Maldives (FAM) to stay the execution of a civil court ruling requiring payment of USD 3,382,000 (MVR 52.1 million) to South Korea’s T Kuing Construction Co. Ltd.

Under an agreement between FAM and T Kuing Construction, football stadiums were to be developed in Villimale and Hulhumale'.

Two invoices; USD 1,197,200 and USD 1,940,800, along with USD 244,000 in additional costs for reconstruction and changes in requirements, brought the total owed to USD 3,382,000.

T Kuing Construction had offered concessions after FAM failed to pay according to the agreement. When the concessions were not accepted, the company filed a civil suit seeking compensation for additional financial losses.

The civil court ordered FAM to pay the full amount within one month from 1 October last year, issuing the verdict in absentia.

FAM appealed the ruling to the High Court and requested a stay on execution. The High Court granted the stay, noting that proceeding with the payment could prejudice the association’s interests, until the matter is fully resolved.

Earlier, FAM had signed a separate USD 17 million project with Korean company Skywind Global, including plans for a 20 storey FAM House, a four storey football arena, and 20 artificial turf football stadiums across the country. That project has also yet to proceed.