Settlement agreements to be voided, all funds to be recovered

The Maldivian Parliament's Public Accounts Committee approved a directive to all relevant local authorities to recover more than MVR two billion paid to various parties as compensation by the Settlement Committee set up by former President Ibrahim Mohamed Solih's administration.

The committee also approved to pursue a criminal investigation via the Prosecutor General's Office, into any potential involvement by President Solih, in the issued settlements. They also approved to pursue criminal investigations into former Economic Minister Fayyaz Ismail and former Minister at the President's Office as well as brother in law to President Solih, Ali Shiyam.

The decision to include President Solih and Shiyam into those who are to be criminally investigated was made because they were co-chairs of the previous administration's economic council, which operated under the cabinet. Fayyaz's investigation is fuelled by the belief that he allegedly played a leading role in reaching the settlements.

The case was forwarded to the Parliament's committee by Funadhoo MP and PNC member Mohamed Mamdhooh.

The committee also decided that the settlement agreements signed from 2019 to 2023 under the regulations on out of court settlement of various disputes involving the government and the regulations on disputes related to government-private agreements, are invalid.

As such it was decided to issue a directive to the Attorney General's Office and other relevant agencies to recover all funds and goods issued as settlements under these agreements.

The committee further decided to notify the Attorney General's Office and other relevant agencies to investigate whether any compensation was paid out of the Public Finance Act or regulations made under the Act. If any such funds or goods are discovered, it is to be returned to the state.

At today's committee meeting, MP Mamdhooh claimed that 36 islands, six lagoons and over USD two billion was issued to various parties as compensation, between 2018 and 2023.

An additional MVR 61.2 million was also to be issued to Dheebaja and another company. However, the transfer was blocked by the Attorney General's Office.