The Attorney General’s Office, on Wednesday, announced that the state paid USD 18.1 million (MVR 280 million) to Nexbis, a Malaysian based security company, for the termination of a border control system project signed in 2010.
The AG Office stated that the government respected the ruling issued by the Singapore International Arbitration Centre on November 24, 2016, which stipulated that Maldives must pay a fine of 18 million to Nexbis.
The AG Office also highlighted the Maldivian government's aim to create a favourable environment for foreign investors.
The agreement with Nexbis was signed on October 17, 2010, during President Mohamed Nasheed’s administration. However, the following administration terminated the contract on August 5, 2013.
Nexbis filed for appeal at the Arbitration Centre on January 9, 2014, seeking USD 272 million in compensation for terminating the project. The Arbitration Court ruled that the border control system project was terminated in violation of the contract and imposed a fine.
Nexbis appealed to the High Court of Singapore after the administration of former President Yameen Abdul Gayoom failed to pay the fine. In response, the court declared that the Singaporean government had a right to take the compensatory amount and ordered the seizure of Maldivian assets in Singapore.