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Previous government spent MVR 438M as compensation

Mohamed Rehan
30 November 2023, MVT 16:12
Minister of Finance Dr. Shafeeq; the current government has accused that the Settlement Committee of the previous government had paid compensation to private entities unlawfully without the counsel of the Attorney General-- Photo: People's Majilis
Mohamed Rehan
30 November 2023, MVT 16:12

Statistics have revealed that the outgoing government has spent MVR 438 million in 2023 in compensation payments.

Ministry of Finance revealed that the previous administration, led by former President Ibrahim Mohamed Solih, had spent MVR 90 million to compensate private third parties during the last two months.

The state had spent four times in excess of the budgeted total for the current fiscal year in paying compensation. The budget allocation for losses and write-offs, which it sets aside to pay compensation for private sector companies and other parties, originally stood at MVR 100 million.

While Mihaaru News submitted an RTI request to acquire information about the companies the government paid compensation to in 2023, the Ministry of Finance denied providing the details. The issue is currently under review by the Information Commission.

The outgoing government had settled an out-of-court compensation to Dheebaja, which was contracted to operate ferry services in 2011.

The state terminated the contracted in 2013, after which the case was in trial for an extended period until Supreme Court's verdict was delivered.

While the top court held to review the compensation for Dheebaja, the government reached to an out-of-court settlement of MVR 64 million, according to a government official.

The state had settled MVR 12.8 million out of this total to Dheebaja before its term expired on November 17.

Government had paid MVR 1.6 billion in compensation to various parties in the last five years.

The state is required to pay compensation to private entities and organizations for unlawful contract terminations.

Meanwhile, the current administration alleges that the previous government had paid compensation, inclusive of tangible and intangible assets, to private companies and organizations without the counsel of the Attorney General. The outgoing government had established a Settlement Committee to pay compensation to these parties, which has been dissolved by President Dr. Mohamed Muizzu.

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