State not required to compensate TMA : Minister Fayyaz
The minister made the statement while speaking at a press conference on Wednesday
Minister of Economic Development, Fayyaz Ismail
Minister of Economic Development, Fayyaz Ismail has stated that the state is not required to compensate Trans Maldivian Airways (TMA) in connection to the lease of the new seaplane terminal.
Speaker of Parliament, Former President Nasheed had previously stated that the government "might" be obligated to pay compensation to TMA if negotiations with the airline company fail.
During a press conference held at the President's Office on Wednesday, Minister Fayyaz responded to a question related to the Speaker's comments, stating that he does not believe the state is required to compensate TMA.
This comes at a time the case of allegations against MACL for deciding to lease the new seaplane terminal to Trans Maldivian Airways (TMA) for an unreasonable price, has made the spotlight and is currently being investigated.
The minister further elaborated that TMA raised various legal arguments to continue negotiations according to discussions when the previous government was in power, however, as no agreement was signed the minister asserted that the state has no responsibility to compensate the airline.
Highlighting that the airline plays a significant role in the country's Tourism, the Minister admitted that the state allowed negotiations to continue between Maldives Airports Company Limited (MACL) and TMA.
As such, while speaking at Monday's parliament sitting, Minister of Finance Ibrahim Ameer stated that the ministry is ready to proceed with the new seaplane terminal operations the way the government envisions it, even if it means having to bring changes to the MACL board.
In a report publicized, ACC stated that if the terminal is leased to TMA, the state will lose USD 55 million each year.
ACC has since launched a criminal investigation into the matter and the state stands firm on its decision to lease the new seaplane terminal for a period of two years.
Identical to the state's decision, the Parliament's Public Accounts Committee - on Tuesday- determined to lease a significant portion of the seaplane terminal to TMA at a rate of USD 10.35 per square-meters.
