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Former govt granted USD127 mln in sovereign guarantee to local company

21 November 2018, MVT 19:23
Former First Lady Fathimath Ibrahim (L) and Meedhoo MP Ahmed Siyam (R)
21 November 2018, MVT 19:23

According to local news media Mihaaru, the former government issued a sovereign guarantee of USD127.5 million as a loan to Sun Siyam Resorts Pvt. Ltd which is owned by Meedhoo MP Ahmed Siyam (Sun Siyam).

While Siyam is also the leader of Maldives Development Alliance (MDA), a partner in the former ruling coalition. The sovereign guarantee was granted in late 2017 to the local company. The loan was used to finance the further development of The Sun Siyam Irufushi, a five-star resort managed by the company.

Siyam's political allegiances were questioned prior to the presidential election due to his inactivity in the former president’s re-election campaign.

While the previous government issued over MVR9 billion in sovereign guarantees, Sun Siyam Resorts Pvt. Ltd is the only private company to have received such a grant.

Other recipients include State Trading Organization (STO) which was issued MVR 3.7 billion, Housing Development Corporation (HDC) which was issued 2.9 billion, State Electric Company Limited (STELCO) which was issued MVR 589 million and Maldives Industrial Fisheries Company (MIFCO) which was issued MVR 57 million.

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