Tag: Fushidhiggaru lagoon

Former presidential advisor accuses tourism minister, finance minister of corruption in Fushidhiggaru deal

Former presidential advisor Ahmed ‘Sandhaanu’ Didi has accused Tourism Minister Ahmed Adeeb and Finance Minister Abdulla Jihad of illegally selling off Fushidhiggaru Lagoon in Kaafu Atoll without the knowledge of then – President Dr Mohamed Waheed Hassan.

Speaking at a press conference today, Didi showed an agreement signed between the government and Ukranian company Prime Capital Pvt Ltd during Waheed’s administration on developing Fushidhiggaru.

The former Special Envoy on Human Rights claimed Waheed only discovered news of the deal when the investors attempted to register a joint venture company at the Ministry of Economic Development, but said both ministers denied the move at the time.

“I was at the president’s office then. Dr Waheed summoned Adeeb and Jihad and asked whether Fushidhiggaru lagoon had been sold off to a foreign party and they denied that any such thing was done,” he told the press.

Neither Adeeb nor Jihad were responding to calls at the time of press.

The Fushidhiggaru deal first came to light during the 2013 presidential elections, when current Home Minister Umar Naseer claimed Adeeb had sold off the lagoon without a transparent and public bidding process.

JP coalition claimed that the agreement was compiled, signed and stamped without legal advice from the Attorney General, in the late hours of January 18, 2013, a Friday night.

At the time, Adeeb denied the existence of an “official” lease agreement and dismissed the allegations as an attempt at “political assassination.”

Despite Adeeb’s denial, local media in September 2013 reported that the Economic Ministry had refused to register a joint venture company for the development of Fushidhiggaru lagoon with Prime Capital.

The company subsequently filed a lawsuit against the Economic Ministry at the Civil Court.

In a verdict (Dhivehi) delivered on July 15, Civil Court Judge Ali Naseer ordered the government to register the joint venture company within a seven-day period, sign a master lease agreement within five days of registration, “and [to] make all arrangements undertaken by the government in accordance with the agreement.”

Didi today said he has submitted relevant documents and letters to the Prosecutor General’s Office, the Anti-corruption Commission and Maldives Police Services requesting the matter be investigated.

“This is the most deceitful and biggest embezzlement in recent Maldivian history,” he said.

“I am aware that by talking about this I am endangering my own safety, but this must be done for the future generation. Prophet Mohamed, peace be upon him advised us to reveal the truth no matter how bitter it may be.”

Didi was imprisoned in 2003 for writing and distributing a newsletter called “Sandhaanu” which criticized President Maumoon Abdul Gayoom’s policies.

Former Auditor General Niyaz Ibrahim in November released a report implicating Adeeb in a US$6million corruption scandal.

Adeeb has denied allegations, and accused Niyaz of colluding with MP and former Deputy Speaker of parliament Ahmed Nazim in releasing the audit report. Adeeb suggested Nazim had a personal vendetta against him following his refusal to support Nazim for the Majlis Speakership in May.

Niyaz was subsequently dismissed from the post through a surprise amendment to the Audit Act, and Hassan Ziyath, the brother of an official implicated alongside Adeeb, was appointed as the new Auditor General.

The Criminal Court on October 26 withheld Nazim’s passport on allegations of blackmail while the Supreme Court today held the first hearing into an appeal of the High Court’s acquittal of Nazim from four counts of corruption.

Photo: President Abdulla Yameen’s cabinet


Related to this story

Court overrules government on lagoon development joint venture

Singaporean company sues three government ministries over lagoon lease

Tourism Minister implicated in US$6million corruption scandal

Supreme Court to hear corruption charges against MP Ahmed Nazim

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Joint venture company registered to develop Fushidhiggaru

A joint venture company (JVC) formed between the government and Prime Capital Maldives Pvt Ltd to develop a special tourist zone in the Kaafu Fushidhiggaru lagoon has been registered by the economic development ministry in accordance with a Civil Court judgment, reports newspaper Haveeru.

Registrar of Companies Mariyam Visam told the local daily today that the ministry registered the JVC within the seven-day period stipulated by the Civil Court verdict, which also ordered the government to sign a master lease agreement within five days of registration, “and [to] make all arrangements undertaken by the government in accordance with the agreement”.

In September 2013, Prime Capital sued the government after the ministry refused to register the JSC citing lack of authorisation from then-President Dr Mohamed Waheed as required by law.

The agreement was signed between Prime Capital and the Maldivian government on January 18, 2013 to lease the Fushidhiggaru lagoon for a 50-year period to a JVC with a 25 percent stake for the government.

According to local media, the government was to receive 30 percent of the profits from the tourism venture in the lagoon south of the capital Malé.

Prime Capital is reported to be a Singaporean company.

Following media reports last year suggesting that the JVC agreement was signed secretively, both Finance Minister Abdulla Jihad and Tourism Minister Ahmed Adeeb initially denied the existence of an agreement to lease the lagoon.

Less than two weeks before the first round of last year’s presidential election on September 7, Jumhooree Coalition campaigner Umar Naseer – now home minister – leaked documents to the media purported to be an agreement to sell the lagoon.

Naseer alleged at the time that the economic development ministry stopped the project as the cabinet had not officially approved it.

Moreover, the agreement was signed without seeking legal advice from the attorney general, he claimed.

Adeeb denied the existence of an “official” lease agreement and dismissed the allegations as a “political assassination” attempt in the days preceding the presidential election.

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Court overrules government on lagoon development joint venture

The Civil Court has ruled in favour of Prime Capital Maldives Pvt Ltd in a contract dispute with the government over a joint venture agreement to develop a special tourism zone in Kaafu Atoll Fushidhiggaru lagoon.

In September, Prime Capital sued the government after the Ministry of Economic Development refused to register the joint venture company (JVC) citing lack of authorisation from the president as required by law.

In a verdict (Dhivehi) delivered on July 15, Civil Court Judge Ali Naseer ordered the government to register the JVC within a seven-day period, sign a master lease agreement within five days of registration, “and [to] make all arrangements undertaken by the government in accordance with the agreement”.

An agreement was signed between Prime Capital and the Maldivian government on January 18, 2013 – under the administration of former President Dr Mohamed Waheed – to lease the Fushidhiggaru lagoon for a 50-year period to a JVC with a 25 percent stake for the government.

According to local media, the government was to receive 30 percent of the profits from the tourism venture in the lagoon south of the capital Malé.

Prime Capital is reported to be a Singaporean company.

Denials

Following media reports last year suggesting that the JVC agreement was signed secretively, both Finance Minister Abdulla Jihad and Tourism Minister Ahmed Adeeb initially denied the existence of an agreement to lease the lagoon.

Less than two weeks before the first round of last year’s presidential election on September 7, Jumhooree Coalition campaigner Umar Naseer – now Home Minister – leaked documents to the media purported to be an agreement to sell the lagoon.

Naseer was campaigning for candidate Gasim Ibrahim, while Adeeb was deputy leader of the Progressive Party of Maldives whose candidate – now President Abdulla Yameen – was facing severe criticism from the Jumhooree campaign.

Yameen eventually won the race with Gasim’s endorsement in a run-off with former President Mohamed Nasheed.

The documents leaked by Naseer showed that Finance Minister Jihad had signed the agreement on behalf of the government while Adeeb – also Tourism Minister under President Waheed – had signed as a witness on behalf of Prime Capital.

Naseer alleged at the time that the economic development ministry stopped the project as the cabinet had not officially approved it.

Moreover, the agreement was signed without seeking legal advice from the attorney general, he claimed.

Adeeb denied the existence of an “official” lease agreement and dismissed the allegations as a “political assassination” attempt in the days preceding the presidential election.

He did say, however, that the Waheed administration was in talks with a foreign company as the previous administration had decided to lease the lagoon.

The Anti-Corruption Commission was meanwhile asked to investigate the deal.

Adeeb also suggested that Naseer was upset after the government refused to lease a lagoon called “Gaafalhu” for his whale submarine business.

In its lawsuit, Prime Capital had reportedly submitted a letter signed by Tourism Ministry Deputy Director Hassan Zameel sent to the economic development ministry requesting approval of the JVC registration.

The Civil Court ruled that registering a joint venture with a government stake was the legal responsibility of the government and ordered the relevant ministries to fulfil all contractual obligations.

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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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