Sinan’s debt controversy: ex-PG Muhuthaz denies cash involvement

Former Prosecutor General Muhuthaz Muhsin has denied the claims made in a report by the Financial Intelligence Unit (FIU) of the Maldives Monetary Authority (MMA) regarding his involvement in the loan repayment of MP for North Hithadhoo constituency Mohamed Sinan.

The report is said to have been prepared by the FIU regarding how the lawmaker paid off his debt, while a case was filed in the Supreme Court claiming that Sinan had lost his parliamentary seat for failing to pay a court-ordered debt. Some media outlets have reported this as an authentic report.

RaajjeMV’s attempts to contact MP Sinan regarding the matter were to no avail as his phone was switched off.

When Muhuthaz was contacted, he denied the report. Muhuthaz said that while his name appears once in the report, it is not mentioned anywhere else, and instead, the name of someone named “Mumthaaz” is used. Therefore, he stated that this is a report circulated by unknown individuals claiming to be from the FIU, and that the information in it is not authentic. He added that he had nothing further to say on the matter.

Sinan was previously Muhuthaz's client.

The report circulating on social media, claimed to be from the FIU, mentions the names of two individuals and a company. They are Muhuthaz Muhsin, Mohamed Sinan, and Health and Glow Pvt Ltd. However, while Muhuthaz's name appears in the "Person of Interest" section, the name Mumthaaz Muhsin is used in other parts of the report.

The report states that on 13 February 2025, former Prosecutor General and current State Minister at the Foreign Ministry, Muhuthaz Muhsin, deposited MVR 1,749,600 into the joint account of Mohamed Sinan and Ahmed Waheed. It also mentions that the amount was deducted to settle the remaining balance of the bank's credit facility as ordered by the court.

Mohamed Sinan had taken a loan of MVR 3.8 million from the bank. Due to non-payment, MIB had filed a case in court. On 14 October 2024, the court issued an order for Sinan to pay MVR 2.5 million within six months.

Documents show that Health and Glow Private Limited released MVR 1.7 million to Mohamed Sinan under an agreement made on 12 February 2025. According to this agreement, Sinan must repay this amount within six months. This money was deposited to the bank in cash.

While the FIU report is circulating on social media, the central bank has not made any statement regarding the authenticity of this report.

Below is a detailed timeline outlining key developments in the case:

• 14 October 2024 - The Hithadhoo Magistrate Court issues a ruling ordering Sinan to repay the Maldives Islamic Bank (MIB). The judgment stipulates that the full amount, MVR 2.5 million, must be paid within six months, with minimum monthly payments not falling below the regular installment due.
• 15 October 2024 - The court's verdict is delivered to Sinan via Viber, with the lawmaker confirming receipt.
• 20-21 November 2024 - Bank of Maldives (BML), which had also been involved in communications regarding the loan, sends a reminder to Sinan, noting that a verdict has been issued and warning that enforcement would be requested in case of non-compliance.
• 16 December 2024 - MIB officially files a request with the Hithadhoo Magistrate Court to enforce the verdict, citing Sinan’s failure to adhere to the court-ordered payment schedule.
• 22 January 2025 - Sinan sends a letter to MIB requesting that the loan facility be rescheduled. No payments had been made by this time.
• 13 February 2025 - The respondent settles MVR 1.7 million with MIB
• 16 February 2025 - Sinan submits letter requesting to reschedule the payments for the remaining two months
• 17 February 2025 - MIB responds to Sinan (the letter states that they request payment according to the judgment and that the payment cannot be rescheduled)

Background of the case

Ghalib Saleem filed a case with the Supreme Court seeking a ruling that Sinan had lost his parliamentary seat due to non-compliance with the court order.

The debt in question stems from a loan of MVR 3.8 million taken jointly by Mohamed Sinan, Ahmed Waheed of S. Hithadhoo, and Mohamed Saleem of S. Hithadhoo. The court judgment required Sinan to repay MVR 2.5 million within six months, warning that failure to comply would trigger enforcement action, including foreclosure on collateral, namely, Sinan’s vessel ‘Rodhi’ and Saleem’s land and buildings known as ‘Precious’.

At a Supreme Court hearing held on 25 June 2025, Ghalib Saleem’s legal representative argued that Sinan had defaulted on the loan and failed to meet the court’s monthly payment requirements. The Hithadhoo Magistrate Court had issued its ruling in Sinan’s absence, further complicating his legal position.

Crucially, it was revealed during the hearing that Sinan made the full payment on February 13, the exact same day the case challenging his seat in the People’s Majlis was submitted to the Supreme Court, a fact that has only heightened public scrutiny and fueled suspicions over the origin of the funds.

The Supreme Court has not yet ruled on whether Sinan's last-minute repayment satisfies the court's original conditions or whether he had already disqualified himself by failing to meet the required schedule.

Meanwhile, questions remain unanswered about how the payment was arranged, particularly amid circulating reports suggesting involvement by individuals linked to Sinan, including former Prosecutor General Muhuthaz Muhsin, who has publicly denied the authenticity of a Financial Intelligence Unit (FIU) report connecting him to the transaction.

As the Supreme Court deliberates, the case continues to draw attention for its political, legal, and ethical implications, not just for MP Sinan, but for broader questions about financial accountability and rule of law among public officials.