An assessment by the Auditor General’s Office shows Male’ High Pvt. Ltd. – which operates Mandhu College - is entitled to no more than MVR 1.5 million as compensation for the former Maldivian administration’s decision to terminate the agreement which allowed them to operate out of the former MES building.
The assessment was made by Auditor General’s Office at the request of Education Ministry last August. Education Ministry asked Auditor General’s Office to determine the compensation Male’ High is entitled to for the termination of the agreement.
The Auditor General’s Office completed their assessment and submitted their report – of which Sun has received a copy - on September 20. The report, signed by Auditor General Hassan Ziyath, recommends two compensation options.
The first option was an MVR 1.27 million compensation. The figure was reached by calculating MVR 100,580 as compensation for Mandhu College’s assets and inventory in the building, and MVR 1.18 million as compensation for Mandhu College’s investment in the building.
The second option was an MVR 1.58 million compensation. The figure was reached by calculating MVR 166,599 as compensation for Mandhu College’s assets and inventory in the building, and MVR 1.41 million as compensation for Mandhu College’s investment in the building.
“Even in the event that the termination of the agreement is declared to be in breach of the agreement, we find the maximum financial compensation the company is entitled to, to be within the range of MVR 1.27 million to MVR 1.58 million,” reads the report.
Both the High Court and Supreme Court have declared the termination of the agreement with Male’ High The courts, however, have not determined a compensation.
Following the Supreme Court ruling on February 28, Male’ High lodged a case with the Civil Court, suing the State for MVR 18 million as compensation. The State settled during dispute resolution on MVR 15 million, and the Civil Court ordered the State to pay MVR 15 million to Male’ High within one month.
The MVR 15 million being as compensation is therefore MVR 13.5 million more than the figure recommended by Auditor General’s Office.
President Ibrahim Mohamed Solih’s administration has been hit with criticism over the decision to settle for such a large compensation, including from several parliamentarians from ruling MDP.
MANDHU COLLEGE PREVIOUSLY PAID MVR 4.69 MILLION
The report by Auditor General’s Office shows Male’ High initially asked for an MVR 243 million compensation. The auditors noted the figure included compensations already paid in light of prior Civil Court rulings.
They found there to be no grounds to provide any additional compensation, citing Male’ High had already been paid MVR 4.69 million by Education Ministry for renovation of the former MES building, and in response to previous court rulings for compensation.