The finance ministry has ordered former Vice President Ahmed Adeeb to pay MVR 74 million, within a week, over the lease of Nasandhura Palace Hotel.

In a letter sent to the former vice president on March 28, the ministry noted that he had failed to collect the fee from NPH Investment Private Limited when ‘extending’ lease, after deciding not to extend the lease with Galaxy Enterprises Maldives Private Limited. It further noted that an agreement was signed between NPH Investment Private Limited, via the Maldives Marketing and Pubic Relations Corporation (MMPRC) for a period of 50 years, and that this had caused the government MVR 74 million in loss.

Noting that this took place while Adeeb heading the tourism ministry, the finance ministry said that the Anti-Corruption Commission (ACC)’s probe into the matter proved that the loss faced by the government was the result of Adeeb’s actions as minister.

Citing Articles 47 and 48 of the Public Finance Regulation, the ministry said that Adeeb has to take sole responsibility for the amount lost from the state, and that it has decided that he must pay back the entire amount.

Ordering Adeeb to pay the entire amount within a week after receiving the letter, the finance ministry added that the case will be forwarded to the attorney general’s office, if he fails to do so.

However, responding to the ministry’s order, the former vice president’s attorney Moosa Siraj highlighted that a court is yet to declare whether his client owes the state any money. He further noted that the finance ministry does not have the authority to give such orders, even if based on a report by the Anti-Corruption Commission.

Corruption allegations had been raised against Adeeb over the lease of Nasandhura previously as well, with the case being forwarded to the Prosecutor General’s Office in January 2016.

Nasandhura Palace Hotel, located in the capital city's waterfront, was leased- along with an additional plot- for fifty years, to NPH Investments, a company where incumbent President Abdulla Yameen's brother-in-law, Mohamed Manik is a shareholder.

The auditor general had raised questions over the lease, noting that the land was leased with a CSR component instead of payment to the state. However, the auditor general noted that details of the CSR had not been disclosed in the agreement.

The auditor general also noted that the former agreement on Nasandhura was annulled on 27th January 2015, and handed over to MMPRC the following day, along with an additional plot.

Despite the auditor general's concerns, the government commenced the project and the work is being carried out at a fast speed.