Noomadi issue: perjury charges raised against ex-housing minister

Perjury charges have been raised against former Housing Minister, Dr. Mohamed Muizzu.

The Prosecutor General’s (PG) Office said perjury charges were raised against the former minister for providing a false testimony against the state, at the Hague-based Permanent Court of Arbitration on 25th June 2019, in a statement sent as a witness on behalf of Noomadi Resorts and Residencies.

The Office said that Muizzu had told the court that the company had been conducting the work as per scheduled without delay, under the agreements signed in 2011 and 2013, as well as that he was not involved in the negotiations held to retrieve Dhiffushimaadhoo in Lhaviyani atoll which was leased to Noomadi for the development of luxury villas.

Hence, the PG Office has decided to press perjury charges against Muizzu, under Article 520 (a and e) of the Penal Code.

The former minister was summoned to the police for questioning twice over the Noomadi issue, most recently on Friday. Speaking to the media after, Muizzu claimed that he was summoned to divert focus from the government’s “blunders”. He was also questioned on February 22.

He was also summoned to the parliament’s committee on public affairs in late 2019, where he claimed not to know where he had given a statement regarding the Noomadi case or whom he had represented. While the committee members noted that information shared by Muizzu showed that he acted in a manner to provide undue benefit to a certain party, they had decided to forward the case to the Anti-Corruption Commission (ACC). Police has also launched a criminal investigation against the former housing minister, over the matter.

While former President Abdulla Yameen’s administration decided to terminate the agreement with Noomadi, the company had filed two cases at the Permanent Court of Arbitration, 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” in August 2019.

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.

Refuting allegations that it violated the agreement, an official from Noomadi had said that the contract was terminated because of a dispute that arose due to a contractual violation by the government.