Bestinet contracted expat system development to avoid paying compensation: Ihusan

Minister of Homeland Security and Technology Ali Ihusan has stated that the government had entered into an agreement with Malaysia's Bestinet Sdn Bhd company to develop the expat system so as to avoid having to pay a large sum as compensation if the existing agreement is to be terminated.

In a press conference yesterday, Ihusan explained that the initial agreement with Bestinet to develop a means of processing expatriate workers entering the Maldives had been entered into in 2015, during the administration of Former President Abdulla Yameen.

However, with the country's decision to halt bringing in expatriates from Bangladesh in 2019, the 15 year contract had remained unimplemented.

Since then, the previous government had exchanged documents via lawyers exploring actions that can be taken in regards to the agreement. At the time, it was proposed that USD 13.7 million be paid as compensation. Ihusan said that this figure does not include the amounts that would be claimed as loss by the company, which amount cannot be estimated.

"They gave two options to Maldives. One is to pay USD 13.7 million as business loss to them at the time, followed by later payment of what they estimate loss in fifteen years would amount to. We do not know what that figure may be. The second option is to contract them to establish foreign placement system, with other services, in Maldvies," Ihusan shared details.

He said that these options had been considered and researched into, after which the government had decided that instead of paying a large sum in dollars as compensation, it would be more feasible to enter a new agreement with Bestinet to establish the expat processing system.

Ihusan said that the introduction of the new system would also double the revenue earned by the State from expatriate workers coming to the Maldives.

"Instead of the State revenues of MVR 685 million earlier received, we estimate that [with this system] the State can receive about MVR 927 million," Ihusan said.

Ihusan stated that this system would be in use by February next year.