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Maldives Government owed Rf190 million from Hudhufushi and Villingili developers; cases sent for prosecution


Thursday, 05 August 2004

MALE, Aug 5 (HNS) -- The Attorney General’s Office on Wednesday said that the cases of Hudhufushi and Villingili islands have been sent to prosecution.

Tourism Minister Hassan Sobir on Wednesday said that the cases were decided to be sent to the AG for prosecution because both parties have violated the agreements with regard to developing the two islands as tourist resorts. But Sobir did not give further details about the cases.

Hudhufushi in Lhaviyani atoll is an island to be developed as a 400-bed resort. It was leased to Abdul Raoof of M .Snow Rose house in the year 2000 for a period of 35 years.

Maldives Holiday
Tourism the main industry in the Maldives

Under the agreement between Raoof and the Maldives government signed on 9 October 2000, Raoof had to open the resort by 30 June 2002. However, as Hudhufushi has not been opened as a resort, to date Raoof owes the government Rf165.4 million (about US$12.8 million) in royalty and fines, the AG’s Office said Thursday.

The office said that between the period 1 July 2002 to 22 February 2004, Raoof had been constantly reminded by the government to pay up this amount. The case has now been sent to trial in order to obtain the money in a lump sum for the government, the AG’s Office said.

The 500-bed Villingili in Addu atoll was leased to Villingili Investments Pvt Ltd, a joint venture company by the government and Energy Travels. The island was leased in the year 2000. The government owns 30 percent of the shares and Energy Tours owns 70 percent of the shares.

Under the agreement with the government, Villingili Investments owes the government Rf25.6 million (about US$1.9 million) for the period 7 June 2002 to 22 February 2004. The case was sent to trial in order to obtain the money in a lump sum for the government, the AG’s Office said Thursday.


 

 

 


 

 


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