Lawsuit seeking to recover MVR 1.1M DRP debt from Maumoon withdrawn

Maldives Transport and Contracting Company (MTCC) has withdrawn the case they had filed against former president Maumoon Abdul Gayyoom seeking to recover outstanding debt for services provided to Dhivehi Rayyithunge Party (DRP), the first political party formed by the former president.

MTCC named Maumoon, the founding leader of DRP, in the lawsuit after the party was dissolved by the Elections Commission (EC) for failing to maintain the legally mandated 3,000 members. The state-owned company was seeking to recover MVR 1.1 million in outstanding ebt for services provided to DRP in 2007.

Civil Court had decided against MTCC in the case, ruling that Maumoon cannot be held liable for the debt. The company subsequently appealed the decision with the High Court.

Attempts by Maumoon to block the appeal failed, with the High Court deciding there is sufficient grounds to proceed with the case.

In April 2024, Maumoon appealed the High Court’s decision with the Supreme Court. However, the top court has yet to deliver a ruling in the case.

High Court, on Wednesday, said MTCC had requested to withdraw their case in February. Accordingly, the three presiding judges unanimously agreed to dismiss the case.

The former longtime Maldivian leader maintains that he does not need to bear responsibility for DRP’s financial obligations.

DRP was founded in 2005 by then-president Maumoon. However, he left the party following differences with the party’s then-leader Ahmed Thasmeen Ali.

He went on to found the Progressive Party of Maldives (PPM) – but was kicked out from the party in 2016 following a power struggle with his brother and then-Maldivian president Abdulla Yameen Abdul Gayoom.

Maumoon then founded a third party in the name of Maldives Reform Movement (MRM).

Both DRP and MRM have been dissolved for failing to maintain the legally mandated membership figure, while PPM has been dissolved in line with the party’s senate decision.