Auditor General to ACC over Kudakurath island lease to Dheebaja

Auditor General's (AG) Office on Thursday, announced its decision to file the awarding of Kudakurath, Raa Atoll, to Dheebaja Investment Pvt Ltd for investigation by the Anti Corruption Commission (ACC).

The state had initially leased the island for 25 years, after the state contracted Dheebaja to provide ferry services in the Northern Province in 2010, but a renewed agreement in 2011 leased the island for a period of 50 years, after creating a joint venture with the state.

According to an audit report released by the Auditor General’s Office on Wednesday, it was revealed that Dheebaja had subleased the island to an additional company, raising concerns over possible corruption and illicit enrichment.

The Auditor General’s Office noted that it was unable to source documents or prove the reason behind the additional 25 years stipulated under the new agreement.

The office also noted that Dheebaja originally stood to receive 15 hectares of land from the uninhabited island to develop a tourist resort, to incentivise the subsidisation of ferry services. However, Dheebaja was awarded 37.6 hectors, including the lagoon area of Kudakurath, under the agreement signed on May 5, 2010, during the tenure of former President Mohamed Nasheed.

After the administration of former president Dr Mohamed Waheed terminated the contract in 2013, Dheebaja filed a lawsuit and won, with the Civil Court ordering the government to pay MVR 348 million to the company as compensation. The Supreme Court upheld the verdict last year.

A request was then filed by the Attorney General's Office at the apex court, earlier in 2020, to review the court's decision upon request by incumbent President Ibrahim Mohamed Solih.

Prior to that, the Attorney General's Office's Settlement Committee initiated discussions with the company and reached an out-of-court settlement of MVR 174 million.

The contract was terminated by the state after Dheebaja breached the agreement, deeming the company as negligent in carrying out their tasks. Thus, the audit report concluded this week that there was no call for the state to make the settlement to Dheebaja.