AGO Voids Nine Settlement Deals Worth Over MVR 1 Billion

The Attorney General’s Office has declared that nine settlement agreements signed by the previous government’s Settlement Committee, amounting to over MVR 1 billion in funds and goods, are void ab initio. The decision, announced on Thursday, deems the agreements non-binding, instructing relevant institutions to disregard them and initiate legal revocations.

Agreements Deemed Invalid

The voided agreements include arrangements with private companies and individuals involving substantial financial payouts, land leases, and asset exchanges. Among the key agreements are:

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• Leisure Beach Pvt Ltd: Extension of a lease for Vaavu atoll Fohtheyobodufushi.
• UMET Construction Pvt Ltd: Compensation of MVR 26 million.
• Exotic Properties Pvt Ltd: Lease of Noonu atoll Ekulhivaru for 99 years.
• Dheebaja Investment: Compensation of MVR 64 million.
• Blue Lagoon Investment: Multiple land leases in exchange for USD 20 million.
• Additional agreements included waivers of rent and fines for islands and long-term leases of atolls across the Maldives.

Legal Basis for the Decision

The Attorney General’s Office stated that the agreements were void from the outset as they contravened the Constitution and existing laws. These policies, drafted by the Settlement Committee, were reportedly designed to benefit specific individuals and lacked the requisite advice from the Auditor General.

The Public Accounts Committee of Parliament has also expressed its agreement that the agreements are invalid. Consequently, the AG has instructed the committee to take legal steps to revoke the agreements and recover any compensation already disbursed.

Implications

The decision to declare these agreements void ab initio reflects a significant step in addressing concerns about the misuse of public funds and improper enrichment. The ruling highlights the necessity for adherence to constitutional processes and legal frameworks in the drafting and execution of such settlements.

Institutions involved are now tasked with the legal revocation of these agreements and ensuring the retrieval of any disbursed payments, marking a critical move towards accountability and transparency in government dealings.