IAS moves to freeze MDP accounts over MVR 3.6M debt

Island Aviation Services, the operator of the national airline Maldivian, has initiated civil proceedings to freeze the accounts of the Maldivian Democratic Party (MDP) due to outstanding payments totaling MVR 3.6 million.

This action stems from a larger debt of MVR 5.6 million incurred by the opposition party for flights utilized during the recent presidential election.

Initially, a settlement agreement had been reached between MDP and Maldivian, outlining a payment schedule to be completed by 2027. However, on July 30, the Civil Court nullified this settlement agreement and ordered the MDP to remit MVR 3.6 million to the national airline.

A party official informed Sun that Island Aviation Services subsequently filed a case with the Civil Court to secure a freeze on all MDP accounts, citing the party's failure to comply with the court's order. The official attributed the delay in payment to Maldivian to a corresponding delay in the disbursement of state funds allocated to political parties.

Civil Court Judge Sinan Ali had directed the MDP to pay the full MVR 5.6 million within a month. Under the terms of the now-cancelled settlement agreement, this amount was to be paid in bi-annual installments until 2027. Following the MDP's default on these agreed payments, Island Aviation Services sought legal recourse to recover the entire outstanding amount in a single payment.

Judge Sinan subsequently instructed the MDP to pay the remaining MVR 3.6 million to the court within a 30-day period. The MDP reiterated that the delay in receiving its due funds was the primary impediment to making the payment and requested an extension. However, this request was denied by Island Aviation Services.