Bank of Maldives sues MP Ali Azim over unpaid loan

The Bank of Maldives Plc Ltd (BML) has sued MP Ali Azim and his father over MVR 3.8 million (US$246,433) unpaid from a loan taken by the pair in 2007 for the construction of the New Queen residence in Henveiru.

According to newspaper Haveeru, Azim and his father claimed at court that the bank raised the interest rate on the loan without prior notice.

Although the pair claimed that they were informed of the interest rate hike a year later, the bank denied the claim.

BML lawyers claimed that Azim and his father was duly informed of the rate hike, which the bank imposed due to nonpayment of loans by Fonnadoo Tuna Products and Mahandhoo Investment.

The MP for mid-Henveiru owns a stake in both companies and had signed the loan agreement as a guarantor.

The Civil Court concluded hearings into Azim’s loan case yesterday (June 17) and informed the parties that a verdict would be delivered at the final hearing.

Following nonpayment of five loans guaranteed by MPs Azim and Ahmed Nashiz, BML is currently in the process of selling mortgaged assets.

Moreover, a case is pending at the Supreme Court concerning the legal status of the MPs as the constitution states that a member of parliament with a decreed debt that was not being paid in accordance with a court judgment shall lose their seats.

MP Ali Azim recently switched from the government-aligned Dhivehi Rayyithunge Party (DRP) to the opposition Maldivian Democratic Party (MDP).