Committee awarded MVR 1bn in settlements; AGO opens review

The settlement committee – set up at the President’s Office during the MDP administration – awarded settlements worth over MVR 1 billion to 10 parties, says Attorney General Ahmed Usham, adding that the Attorney General’s Office (AGO) finds this unjust, and has therefore opened a review.

The settlement committee was set up during former President Ibrahim Mohamed Solih’s administration to review and provide compensation over cancelled government contracts. But the new administration, which came to power in November 2023, dissolved the committee.

In a press briefing on Wednesday afternoon, Usham said that 10 parties were awarded money and islands in settlements by the committee.

He said that the monetary value of the settlements is upwards of MVR 1 billion.

“We are currently reviewing the decisions of the settlement committee,” he said.

“The committee has settled with parties that sued the state, in cases where they clearly had no chance of winning. There are also cases where higher amounts were awarded, in situations where the Attorney General’s Office counseled a specific course of action and instructed the payment of a specific amount if going for settlement,” he said.

Usham said the AGO has selected a team to conduct the review.

He added that the Finance Ministry and Tourism Ministry have been instructed to freeze the settlement payments, as the AGO conducts its review.

‘I say Tourism Ministry, because a lot of these parties were awarded islands to run tourist establishments,” he said.

Usham said the AGO has also asked for an assessment from the Auditor General’s Office to ascertain that the settlement payments were fair.

He said the AGO excepts to receive the report soon.

“This will be done soon, after which we will make a decision regarding how to proceed with these 10 cases,” he said.

The former administration had treated the parties that were awarded settlements and the specifics as classified information.