Minister of Finance Ibrahim Ameer has stated that the dispute with Noomadi Resorts and Residences was settled according to the government's own volition.

The minister made the statement in response to a question posed by MP for Kaashidhoo constituency, Abdulla Jabir at Wednesday's parliament sitting.

MP Jabir questioned the legal grounds of the financial settlement, specifically asking the minister regarding the legal grounds or authority under which the government chose to compensate Noomadi with tax-payer money while the case was still ongoing at the Permanent Court of Arbitration.

In response, the minister stated that the matter was settled under the rights afforded to the defendant at the arbitration court and that the decision was taken out of the government's own volition.

The minister explained that both arbitration cases were filed against the Maldivian government, adding that the state- who is the defendant in the matter- has the option to settle out of court.

Likewise, article 34 of the United Nations Commission On International Trade Law (UNCITRAL) Arbitration Rules describes grounds for settlement and specifically states that the arbitral tribunal shall terminate the arbitral proceedings if both parties come to an agreement before the court issues its verdict.

While the arbitration cases were filed at the Hague on 11th December 2017, the agreement to settle outside of the courtroom was signed on August 25th 2019, with the state agreeing to pay USD 55 million to Noomadi Resorts and Residences as a “full and final settlement.”

The local company was contracted to develop housing units on multiple islands, however, the previous administration had terminated the agreement claiming “contractual violations.”