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The most owed as compensation for Mandhu College is 1.5 million Rufiyaa: AO Report

Lamya Abdulla
28 April 2021, MVT 21:43
MES building: The contract given to Male' High Private Limited to use the building as a campus for an international school was annulled in 2015 -- Photo: Mihaaru File
Lamya Abdulla
28 April 2021, MVT 21:43

The assessment report by Auditor General's Office has shown that the maximum amount the state owed to Male' High Private Limited was 1.5 million Rufiyaa.

This assessment report was completed prior to the state agreeing to give Male' High Private Limited 15 million Rufiyaa as compensation on April 22, regarding the matter of annulling the contract on leasing the building that used to be Male' English School (MES) to Mandhu College.

MES building was leased to Male' High Private Limited, the company in charge of managing Mandhu College, to be used as a campus for an international school in 2008. However, after deciding the company was not using the building as contracted, it was taken back from Male' High Private Limited by the state in 2015.

Since then both High Court and Supreme Court have decided the annulment of the contract by the state was invalid. Both courts further stated Male' High Private Limited can file compensation for damages.

Male' High Private Limited then claimed 18 million Rufiyaa as damages. However, at the dispute resolution stage in Civil Court, the state agreed to give 15 million Rufiyaa as compensation. That is the amount the company has so far spent on alternate locations after Mandhu College was booted out from the MES building.

After receiving a letter from Education Ministry on August 23, 2020, Audit Office prepared an assessment report detailing the losses faced by Male' High Private Limited. The report stated the most the state owed the company was between 1.2 to 1.5 million Rufiyaa.

As parts of the MES building was given to be used as a campus for Arabiyya School temporarily, Mandhu College and Male' High Private Limited have received 4.6 million Rufiyaa in compensation from 2010 to 2019.

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