Muizzu summoned over Noomadi case: claims statement had 'no influence'

Former Housing Miniser Dr. Mohamed Muizzu was presented to the parliament’s public affairs’ committee on Monday, for questioning regarding his statement in the dispute against Noomadi Resorts and Residences.

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.

Former President Abdulla Yameen’s administration terminated the agreement claiming “contractual violations.”

Noomadi, who denies the allegation, filed two cases against the Maldivian government at the Permanent Court of Arbitration in Netherlands, seeking USD 155 million in compensation.

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

At Monday’s meeting, Muizzu claimed that his statement to the arbitration court -where he agreed that the contract was annulled unlawfully- had no influence in the case.

However, the former minister said that he had given the statement in question after the government change and because officials of the current administration had mentioned his name in their statements to the court.

He further claimed that the case was in the government’s favour when the Yameen administration ended last November, adding that “everything changed” because of the incumbent government’s actions.

Following Muizzu’s comments, committee members said that it can be deduced that this was because of the former minister’s statement. They added that the international experts that assisted the government on the case, had stated that there was a slim chance of the government winning the case, given the former minister’s statement.

Furthermore, despite repeated questions from members, Muizzu had difficulties in answering specific questions, such as whether he had given the statement on Noomadi or the government’s behalf and whom it was given to.

Muizzu was the Minister of Housing and Infrastructure when the Noomadi agreement was terminated during President Yaameen's regime.