The Maldivian government has nullified settlement agreements amounting to over MVR 1 billion in compensation, previously initiated by the former administration under the Maldivian Democratic Party (MDP). The decision was announced by the Attorney General’s (AG) Office in a statement released last night.
According to the AG’s Office, nine settlement agreements signed by the previous government on November 28, 2022, have been declared invalid and are no longer enforceable. The announcement follows an order by President Dr. Mohamed Muizzu to dissolve the Dispute Resolution Advisory Committee and review the agreements in question.
The settlement committee, which was formed under the former administration, had approved compensation payments exceeding MVR 225 million to various parties before November 17. Additionally, compensation agreements involving property and monetary settlements worth over MVR 1 billion, including uninhabited islands, had been finalized by the committee.
In response to the President’s directive, the AG’s Office examined the agreements and found that the rules under which they were formulated violated the Maldivian Constitution. The AG’s statement further emphasized that the agreements signed under these rules lack legal validity and cannot be enforced.
The Maldives Parliament’s Finance Committee also reviewed the agreements and concluded they were invalid in origin. The committee has recommended that all necessary legal measures be taken to cancel these agreements. Acting on this recommendation, the AG’s Office has informed relevant government agencies that the settlements are not legally binding.
This move reflects the current administration’s stance on addressing questionable financial practices and safeguarding state resources. By halting these agreements, the government aims to prevent significant financial losses and ensure compliance with constitutional principles.
