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H.A. Vashafaru city hotel issue filed at ACC

Lamya Abdulla
09 February 2023, MVT 12:45
Vashafaru City Hotel
Lamya Abdulla
09 February 2023, MVT 12:45

The contractor assigned to develop a city hotel in Haa Alifu atoll Vashafaru has submitted a case to Anti Corruption Commission (ACC) after the development contract was dissolved.

This case was submitted by Thollath Rasheed from Hoarafushi in the same atoll. According to his lawyer, Muhthaz Muhsin, the case is being pursued because the Vashafaru Council illegally cancelled the agreement.

The contractor approached the ACC to investigate the manner in which the island council had canceled the agreement and to see if there was any corruption involved in the decision making process.

In 2013, an area of 300,000 square feet north of Vashafaru was awarded for development as a big hotel. In nine years, 50 percent of the work was completed. A total of 102 rooms are to be constructed at the city hotel; however, only 24 rooms have been completed so far.

Muhthaz said that the deadline for completion was extended by the tourism ministry for another three years because the contractor faced multiple delays in acquiring the necessary permits from the ministry.

However, he alleges that the council took the decision to cancel the agreement without considering the ministry’s decision, in a manner that would give undue benefits to a particular party.

“There may also be a situation where the state has to pay a lot of money as compensation for the damages caused by the cancellation of the agreement," he said.

The builder has spent approximately USD three million on the site.

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