ACC calls upon the government to stop leasing islands in ways that lead to corruption

Anti-Corruption Commission (ACC) of the Maldives has said that the government has been leasing land and islands for tourism and other industrial and developmental projects in ways that lead to corruption. ACC called upon the government to make necessary corrections in the procedure and policies in order to make the process of such leasing more transparent and immune to corruption.

ACC issued a Statement last night in which it said that proposals prepared and submitted by private parties to the National Planning Council were discussed in the Council and approved by the Council with the direction of the Cabinet, according to information communicated to the ACC. “According to the information that we have received, it is done in ways that lead to corruption, and there is no transparency there”, said the Statement of ACC.

ACC noted that giving some private parties to offer proposals and lease land and islands for economic purposes, without the government predetermining property to be leased and announcing them, was a grave wrong.

ACC Statement urged the government to adopt the proper procedure for leasing land and islands for economic purposes. Such a procedure would, according to ACC, involve public announcement of leasing opportunities, equal opportunities for all prospective parties, and proper evaluation of all proposals.

According to Article 5 of the Tourism Act, the government can lease islands for hotel business without public announcement if the investment is shared by the government. However, ACC Statement said that if the government entered into agreements which initially allocate the government a nominal or minimal shareholding, with an article that obliges the government to sell its share to the other party after a few years, that would be construed as deals struck in order to provide undue benefits to the party sharing the investment. ACC also said that it would undermine the interests of both the State and the people.

ACC also noted that if the parties who proposed to lease islands for economic and industrial purposes without any public announcements of leases were senior officials in the government, or relatives of such officials, there would arise reasonable suspicion of corruption.