Government pays USD 18m to Nexbiz as compensation
Waheed's government cited major losses as the reason why it terminated the contract
Photo taken at the contract signing ceremony | Google
The Maldives government has given USD 18 million to Nexbiz as compensation for the termination of their contract.
The contract with Nexbiz to install a Maldives Immigration border control system was signed on 17 October 2010, during President Mohamed Nasheed's administration.
Maldives Immigration served a notice to Nexbiz to terminate the contract on 5 August 2013 during President Mohamed Waheed’s administration.
Azima Shakoor, the Attorney General of Waheed’s administration, cited major losses to the government as the reason for the contract termination.
Afterwards, Nexbiz filed suit against the Maldives government at the Singapore International Arbitration Center, demanding over USD 272 million in compensation for losses incurred.
On 24 November 2016, The Singapore arbitration center ordered the Maldives government to pay USD 18 million to Nexbiz in settlement and compensation.
In a statement on Wednesday, the Attorney General’s office stated that the previous administration of President Abdulla Yameen had refused to pay the amount but that the current government agrees that the contract termination was unlawful.
The AG’s office stated that the current government reiterates its commitment to maintaining trust with foreign investors and agrees to pay the settlement.
