Police accuse former Home Minister of defrauding Madoogali Resort of service charge payments

Police have accused the former government’s Home Minister Hassan Afeef and a fellow shareholder of Madoogali Resort of implementing a policy halting service charge payments to staff, as required by the Employment Act.

In a statement police said company involved was Blue Lagoon Investment Private Limited, and identified the second shareholder as Moosa Hassan of Mathidhoo in the Maafaanu ward of Male.

Police alleged that Blue Lagoon Investment Private Limited had taken a 10 percent service charge from the tourists from November 2011 to January 2013, but failed to account for this in documentation.

Police claimed their investigation had revealed that the shareholders had defrauded 29 percent of the money they took as service charge.

According to police, the two shareholders also mortgaged the resort with a bank without consulting with the company’s third shareholder, against the regulations of the tourism ministry.

Police alleged the money from the bank was then used to pay the rent of Raafushi Island in Noonu Atoll, an uninhabited island being developed into a resort by a company shared by the two shareholders, Afeef and Moosa.

Speaking to Minivan News, Hassan Afeef alleged Police Commissioner Abdulla Riyaz had been bribed and told Minivan News to call Riyaz and “ask him more about it”.

Afeef then referred Minivan News to his lawyers as the case was going to be taken up in court.

Mauroof Zakir Hussein of the Tourism Employment Association of the Maldives (TEAM) said the organisation had not received any complaints from staff at the resort concerning service charge payments.


6 thoughts on “Police accuse former Home Minister of defrauding Madoogali Resort of service charge payments”

  1. of course, this guy will never know how to do any fraud ? Since he is one of the senior member of MDP and close friend of Fili Nasheed and Afeef can not do any wrong .

    Police must have done this and Police must have taken the loan by mortgaging his Island not him.

  2. Minivan should put this story in context of the illegal hijacking of the resort by the third shareholder since March this year. The third shareholder namely Hussain Shareef of H. Mirihi(or bolifushi shareef) has illegally taken control of Madoogali Resort with a letter signed by Minister Adheeb from Tourism Ministry asking everyone to cooperate with Shareef and accusing the other shareholders of fraud. How the Minister of tourism can issue such a letter, and make himself the judge of shareholder disputes of Blue Lagoon Investments (BLI) is beyond my understanding of the mandate of the tourism minister. Furthermore the tourism ministry has issued operating license of the resort to BLI and when a minister goes against the ministry's mandate to serve his own personal interest it surely is corruption and one has to wonder at what level! With all this going on it's no wonder that now the baghee police with the backing of Adheeb of course would be making these allegations against two shareholders who are very much MDP. It's the thinking of this baghee government to wipe out MDP from the face of this earth!

  3. It is also worthwhile noting that the former GM of Madoogali, who resigned on his own accord citing family commitment as an excuse, just before Shareef took control of the resort illegaly with Adheeb's backing, has been housed in madoogali resort as Shareef's guest since March. Coincidence? How many people are on Shareef's payroll is what the police should be investigating. But then of course, Riyaz is also on Shareef's payroll so how can they investigate that eh.

  4. Can anyone explain how two directors out of three can mortgage the Resort which belong to three people and get the loan and pay the loan payment from the income that is generated from a company whose shareholder three ?

    Does this legal ?

  5. Kuribee, the internal dealings and business arrangements within companies are not something that everyone will know about or understand especially not people who are out to get others for political purposes like Adheeb or Police. What the police has investigated and released statements on are just half the story and biased to protect the third shareholder Shareef. If Shareef wants to complain about the two shareholders mortgaging the resort and taking a loan for their business expansion, why doesn't Shareef talk about the millions of dollars of loan that he has taken from the State Bank of India (SBI), using his shares in BLI or Madoogali as a mortgage against his loan? This was done several years back and without any notice to the other two shareholders as well. So when they do the same it becomes an issue? Now the SBI has through court given him 6 months to pay back that loan. Furthermore Shareef has been in hiding since 2008 living overseas as he wasn't able to pay many loans he has taken from different people and he was not involved in the company operations at all and decided to come back and just hijack the resort for his own benefit. I reckon he's trying to get hold of the resort illegally sell it and then settle his debts. Otherwise why resort to such extreme measures instead of trying to settle this dispute as shareholders? And the moment people like Husnu Sood and Adheeb became involved in this, then it has dirt written all over it.

  6. Kuribee,you may want to look into this completely before passing judgement? What do you think of these?

    1. A tourism minister gives a letter giving controls to ONE shareholder based on allegations...in what capacity would a tourism minister have this right?

    2. A former GM who left the resort on his own when he was questioned for suspicious acts in resort operations (including how service charge was calculated outside company policy), comes back to the resort the same day Shareef 'hijacked' the resort and continues to stay on the resort illegally despite a court order giving remaining shareholders the right to have him removed. No assistance from police on this matter to date.

    3.Then present Deputy GM (now terminated) acts against the company policy and procedures to cooperate with Shareef and informs TOs and the industry partners to divert funds to a new bank account! (By the way, former Deputy GM used to work with Shareef at Bolifushi)

    4.All pending service charge payments are on hold since Shareef took over the resort illegally because he has advised the resort's accounts department not to formulate the calculations per company's existing policy and instead wants to issue service charge from departments where service charge is NOT taken!

    These are just some details that the police might NOT want to investigate to protect Riyaz, Adheeb and the likes.


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