Out-of-court agreement reached to pay MVR 3.6 million owed by MDP to Maldivian

IAS submitted the agreement to the court, requesting an order for both parties to abide by it and to conclude the ongoing case.

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Foreign Minister Abdulla Shahid (L) and Speaker of the Parliament and former President Mohamed Nasheed (R).

Shazma Thaufeeq

2026-07-02 20:19:55

An out-of-court agreement has been reached to recover MVR 3.6 million owed to Island Aviation Services (IAS) for travels made by MDP for the last presidential election campaign.

Out of the MVR 5.6 million owed for travels made by MDP on Maldivian flights during the campaign, the Civil Court ordered in July last year that the remaining MVR 3.6 million be paid within one month. However, that money has still not been paid.

Island Aviation requested an order to freeze MDP's account and submitted a case to recover the funds through the court after deducting the amount from the state budget funds allocated to MDP.

However, while the case was pending in court, a settlement agreement was established between MDP and IAS. IAS submitted the agreement to the court, requesting an order for both parties to abide by it and to conclude the ongoing case.

Consequently, the Civil Court delivered its judgment accordingly in the enforcement case today. The Civil Court ordered both parties to adhere to the settlement agreement. However, details of the agreement were not obtained.

Initially, a settlement agreement was made to pay the MVR 5.6 million owed for campaign travels made by MDP during the presidential election period in bi-annual installments to be fully cleared before the year 2027. However, Island Aviation filed the lawsuit to recover the full amount at once because MDP failed to pay the funds as agreed under that arrangement.