Audit: Protected island Bathalaa leased unlawfully; lease uncalculated

An audit by the Auditor General’s Office (AG Office) shows that Bathalaa, a small island located in the biosphere reserve in Baa Atoll, a protected region, was leased unlawfully.

According to the audit report, the Baa Atoll biosphere reserve, which includes Bathalaa, was designated protected status on June 5, 2011, without nullifying a lease agreement executed by then-Fisheries Ministry on December 5, 2010.

The report underscores that the Tourism Ministry leased the island to a private company for tourism purposes on October 10, 2013, for a period of 20 years – an action that directly contradicts the island’s protected status.

The island was leased with a rent of USD 4 per square meter starting from the date of the agreement. However, since the island’s land mass was not reported to Maldives Inland Revenue Authority (MIRA) even by the revocation of the agreement, the lease was not actually calculated. The audit underscored that MIRA had only been privy to the fact that an agreement was executed on July 25, 2016.

As a result, despite the island having been officially granted protected status, another party retained the right to pay rent and use the island for a period of three years and two months from the date it was designated as a protected area.

The audit further underscores that shore protection works were carried out at the island without obtaining the necessary permits. While the island has been completely wiped out by erosion, the audit attributes this destruction to the unpermitted shore protection activities. In spite of this, the audit stressed that the case was not investigated, nor was any action taken.

The AG’s Office, noting that shore protection and infrastructure works at Bathalaa were carried out without the required Environmental Impact Assessment (EIA) or permits, recommended that the relevant authorities investigate the matter. The office also urged action against the responsible party and the recovery of losses resulting from the complete erosion of the island.