The Attorney General’s (AG’s) Office on Thursday declared nine settlement agreements, made under the Rules of Procedure for Resolving Disputes between Government and the Private Sector, invalid and directed the relevant authorities to cease compliance with the terms of these settlements.

The AG’s Office said in a press statement that it declared the agreements invalid because the procedure for dispute resolution in government-private agreements lacked legal status and authority.

“These cases have been examined by this office, and it has been found that the rule is unconstitutional and illegal, and that the decisions and settlement agreements signed, without the consent of the Auditor General, are designed to enrich certain individuals,” the AG’s Office said.

The agreements declared null and void included:

U-Met Construction Pvt Ltd
To be paid MVR 26,000,000 in damages

Leisure Beach Pvt Ltd*
*Prior to signing the settlement agreement, the rights of Leisure Beach Pvt Ltd were transferred to Amrock Investment (Maldives) Pvt Ltd under a deed of assignment on 16 March 2023.
Allowing for the extension of the lease agreement for Fohtheyobodufushi Island in Vaavu (V.) Atoll by rounding off the period between submission of a Work Plan to the approving Ministry and signing of the settlement agreement to 30 days, following which an addendum to the lease agreement was to be signed within two weeks.

Exotic Properties Pvt Ltd
The 99-year period lease for Raafushi Island in Noonu (N.) Atoll to be amended and switched to N. Ehkulhivaru Island, with a construction period of six years and the waiving of payments related to the previous lease agreement.

Dheebaajaa Investment Pvt Ltd
To be paid MVR 64,000,000 in damages.

Umson & Food Beverage Pvt Ltd
To be paid MVR 5,100,000 in damages.

Clear Sands Pvt Ltd
The three islands of Vanbadhi, Kani, and Fushi in Thaa (Th.) Atoll to be leased to the company for a period of 50 years, with a five-year construction period. Additionally, in lieu of financial compensation for damages, Mafaru Falhu (4° 5′ 4.644″ N, 72° 43′ 27.596″ E) to be leased for 50 years with a seven-year construction period.

Blue Lagoon Investments Pvt Ltd
Madoogali Island in Alifu Alifu (AA.) Atoll to be leased to the company for 50 years with a six-year construction period to develop the island. Additionally, 50-year leases with five-year construction periods for Villingilli Island in Raa (R.) Atoll (4.45 hectares), R. Thaavatha (8.22 hectares), and Orimasvaru Island in Noonu (N.) Atoll (5.84 hectares) were included. These leases were in lieu of US$20 million in damages, with the remaining US$8,447,000 in damages to be treated as advanced rent for R. Villingilli, R. Thaavatha, and N. Orimasvaru.

Abdulla Ali
A new lease agreement for a 50-year lease of Hondaafushi Island in Haa Dhaalu (HDh.) Atoll, with the waiving of outstanding rents and penalties for HDh. Hondaafushi.

JH Resorts Pvt Ltd
Kudamuraidhoo Island in HDh. Atoll to be leased for 50 years with a six-year construction period, along with the waiving of past rent and penalties under the previous agreement.

The AG’s Office further noted that the Parliament Public Accounts Committee had also reviewed the settlement agreements and directed the agency to take appropriate legal action to cancel the agreements and recover any compensation already paid.

The committee also instructed the Attorney General and relevant agencies to take necessary measures against those involved, the AG’s Office said.