Strada not owed MVR 14.4 million over Chatime’s shuttering: ACC

Anti-Corruption Commission (ACC) has stated that Strada Pvt Ltd is not owed MVR 14.4 million in compensation over being forced to shut down Chatime.

The global franchise teahouse chain near the capital city’s bridge viewing platform was forced to close down in April of last year due to the government’s project to expand the roads leading to the Sinamale’ Bridge.

In October of last year, ACC ordered the Housing Ministry to halt its decision to pay Strada MVR 14.4 million "as a compensation."

ACC recently released an investigative report, stating that it has informed the Housing Ministry in February that it is not required to pay compensation, and that its investigation has found that the agreement between the ministry and Strada was made to provide undue benefits.

ACC detailed that the agreement did not stipulate the building of Chatime but that, after Strada sent a request letter, the Housing Ministry allowed the company to build a drink outlet after moving the parking space in the area.

ACC stated that, while the documents show that the development of the bridge viewing platform was temporary, the changes to the initial agreement had confused its original purpose, and that Strada had also neglected to pay rent, which had accumulated to MVR 1.4 million.

Since Strada had also neglected to pay rent and ignored conditions in the agreement, ACC highlighted that the Housing Ministry had the right to terminate the agreement and stated that the ministry’s decision to pay compensation instead is an indication that it was a move to provide undue benefit to the company.

The government has also ordered Strada to close Newport View restaurant at the bridge platform, but the company has taken the issue to court.