Siyam's loan guarantee process halted due to concerns at Finance Ministry

Work being carried out to give out a MVR 200 million loan guarantee to tycoon Ahmed "Sun" Siyam has been halted, following concerns from employees at the Ministry of Finance and Treasury.

RaajjeMV understands that the process was halted following concerns and disapproval by employees. Finance Ministry of Maldives recently settled all the arrangements for a 200-million-dollar loan which is expected to be granted by a bank of China, to Sun Hotel and Resorts.

RaajjeMV understands that some staff members at the Ministry are against the decision, and are questioning whether the company will be able to pay back such a hefty amount.

Sources have also informed RaajjeMV that a separate department was formed to handle the matter, after those in the Loan Guarantee department refused to approve to guarantee to Sun Hotels and Resorts.

However, RaajjeMV has been unable to get an official comment from the Ministry.

The government, in December 2016, gazetted a new policy on releasing Sovereign Guarantees for a fee.

Compiled by the Finance Ministry, the policy states that guarantees would only be issued to companies that have government shares and/or are registered in Maldives. The guarantees will be granted only for projects in the tourism sector, social housing that meets government conditions, and state authorized development projects, according to the policy.

RaajjeMV understands that the loan which is in approval process for Sun Hotel and Resorts is to develop a resort in Noonu Atoll Dhigurah along with an airport at Noonu Atoll Maafaru.

NOONU ATOLL DHIGURAH

Back in May 2015, Siyam had said that "following completion, the resort will become the largest resort in the Maldives, with over 600 rooms in 14 different categories, opening over 2,500 job opportunities for the community."

The resort will have 15 food and beverage outlets, as well as an underwater restaurant."

Dhigurah is located near Sun Hotel and Resort's Irufushi Resort, and was handed to the company in October 2013.

MAAFARU AIRPORT DEVELOPMENT

While Sun Hotels and Resort is working on getting a loan approval to develop Maafaru Airport, the government is yet to announce that the project has been awarded to them. Sun Hotels and Resorts is one of the two companies that showed interest in the project.

RaajjeMV was unable to get a comment from Regional Airports on the matter.

Re-bidding was opened after the government decided to take the project from Millennium Capital Investment (MIC).

MIC is owned by Hamid Ismail, a close relative of former vice president Ahmed Adeeb, who has been accused of orchestrating the explosion aboard the presidential speed boat carrying President Abdulla Yameen and First Lady Fathimath Ibrahim, as well as members of the cabinet. Adeeb has denied any involvement. Ismail is also under police custody.

The foundation of the nearly USD 17 million project was laid by former VP Adeeb on 23^rd September 2015. Later anti-corruption commission (ACC) announced that they were investigating a case where an extra 13 hectares of and were allocated for the construction of Maafaru Airport, though it was awarded under the condition that the land needed for the airport must be reclaimed by the company.

"Sun" Siyam, the leader of government coalition partner Maldives Development Allaince (MDA), is a close acquaintance of President Abdulla Yameen.