Singaporean company sues three government ministries over lagoon lease

A Singaporean company called Prime Capital has sued three government ministries for alleged breach of an agreement signed with the company by Tourism Minister Ahmed Adheeb and Finance Minister Abdulla Jihad to lease the Fushidhiggaru lagoon in Kaafu atoll.

According to newspaper Haveeru, the lawsuit filed at the Civil Court on September 19 states that the ministers signed an agreement to lease the lagoon to be developed as a special tourist zone by a joint venture company (JVC) with a 25 percent stake for the government. The lagoon was to be leased for a 50-year period with the government to receive 30 percent of profits from the venture.

However, the Economic Development Ministry refused to approve registration for the joint venture company citing lack of authorisation from the president as required by law. The company is suing the Tourism Ministry, Finance Ministry and Economic Development Ministry and asking for a court order to compel the latter ministry to register the JVC.

The lawsuit also stated that the company was facing financial losses due to the government’s failure to hand over the lagoon in accordance with the agreement signed in January 18. A hearing of the Civil Court case has not been held yet.

The company also submitted a letter signed by Tourism Ministry Deputy Director Hassan Zameel sent to the Economic Development Ministry asking for approval of the registration.

Both Adheeb and Jihad had previously denied signing an agreement to lease the Fushidhiggaru lagoon.

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