State considers seizing Laamu atoll Bodufinolhu

The project to develop the Laamu atoll Bodufinolhu as a tourism training resort is not being carried forward, and it has now reached the point where the government has to take over the island even after paying compensation, Tourism Minister Abdullah Mausoom said today.

It has been approximately 15 years since Premier Activity Pvt Ltd was awarded the contract to develop Bodufinolhu as a hospitality training institute.

When Laamu atoll Gann MP Mohamed Visham raised the issue in parliament on Tuesday, the minister stated that the Laamu atoll MPs and council members do not believe Premier Activity Pvt Ltd will be able to develop the island in accordance with the agreement.

The case has now been filed in court on the grounds that the "vacant position" of the land has not been obtained, and the minister said that out-of-court discussions were even held to expedite a solution.

Minister Maumoom said that the state and Premier Activity could not agree on the compensation amount, which has given rise to the question of whether an out-of-court settlement could be reached.

"In light of the discussions, we are unable to move forward now," Mausoom said.

The Minister said that the next question is whether to seize the island. It has to be considered whether the island should be seized even after paying a compensation of USD 2.7 million to Premier Activity, he said.

"Now two islands cannot be developed. So this has gone to the point where they have to be seized even after paying compensation."

The tourism minister said that in the future he would work to seek compensation for the state in such cases.

The reason is that airports are being developed, and resorts should be developed at the same pace, he said. The failure to achieve this resulted in the state losing tax revenue and job opportunities for the youth, he added.

"This is also part of the liquidate damages we have considered. Now it is important that the contractors include that part," Mausoom said.

Premier Activity was awarded the project for a period of 25 years, and 4.6 hectares of land were to be developed under this contract.