Fayyaz responds to allegations regarding a loan taken for resort development!

Former Economic Minister Fayyaz Ismail has responded to allegations made by prominent businessman Mohamed Shafeeq regarding a loan acquired for a resort development project.

In an interview with "Adhadhu," Fayyaz stated that Shafeeq is an individual for whom he holds great respect. He noted that while some of the remarks made by Shafeeq on social media regarding a resort development loan are accurate, he believes other statements may have been influenced by lapses in memory or a misunderstanding of the facts.

Emphasizing that he never held a direct stake in the project, Fayyaz clarified that he does, however, maintain a certain level of interest in the venture.

The project in question is not one in which I have ever held any shares. However, I did have some degree of interest in it through various means, and that remains the case today. As Shafiq mentioned, the project was spearheaded by a group of very young individuals who sought the loan to move forward. Given their circumstances, the bank requested a financially stable guarantor to secure the financing. The guarantee provided by Shafiq was not issued to me, nor was it something I requested. The majority shareholder of that project is a very close associate of Shafiq, and he provided that guarantee as a favor to that individual.

Former Economic Minister Fayyaz Ismail

Fayyaz stated that the guarantee was a form of assistance provided by Shafeeq to a shareholder involved in the project. He further noted that, to his knowledge, it was agreed that Shafeeq would receive shares in the project in exchange for the guarantee. However, Fayyaz added that the project ultimately failed after a significant portion of the work had already been completed.

Noting that business ventures occasionally fail, Fayyaz stated that the resulting losses were felt by all parties involved. He added that he intends to meet with Shafeeq regarding the statements made concerning the matter. Fayyaz reiterated that the guarantee provided by Shafeeq for the project was not issued at his request, nor was Shafeeq under any duress from anyone to provide it.