Parliament’s public affairs’ committee meeting was held behind closed doors on Wednesday, where it questioned former Housing Minister Dr. Mohamed Muizzu regarding a dispute with Noomadi Resorts and Residences.

While the company had filed two cases against the Maldivian government at the Permanent Court of Arbitration in Nedherlands, seeking USD 155 million in compensation, after the previous administration annulled their agreement over alleged contractual violations.

The current administration decided to reach an out of court settlement with Noomadi, following advise from the “settlement committee” formed by President Ibrahim Mohamed Solih, and paid MVR 55 million as a “full and final settlement.”

The former housing minister was summoned to the committee on public affairs as the government and committee members agree that the previous administration could have handled the matter in a more cost-efficient manner.

They believe that then-government’s actions led to the company demanding such a huge cash settlement.

While Muizzu is to have given a statement to the arbitration court when the case was ongoing, government officials claim that he had admitted that the agreement was annulled unlawfully.

Noomadi was contracted to develop 600 housing units under a private villa module, and the “Phase I” agreement was signed on 20th January 2011 during former President Mohamed Nasheed’s administration. A “Phase II” agreement was signed on 30th January 2013, to develop an additional 500 housing units, a police academy and water and sanitation systems in three islands.

Noomadi denied allegations of violating its agreement with the Maldivian government.