MVR 1.6B paid in compensation for companies by current administration

Finance Ministry headquarters in Male' City. (Sun Photo/Fayaz Moosa)

Finance Ministry’s statistics show that the current administration has paid over MVR 1.6 billion in compensation for losses incurred by various companies.

A document issued by the Finance Ministry on Sunday in response to information requested by Sun under the Freedom of Information Act revealed that the current administration, so far, has paid over MVR 1.6 billion in compensation for losses incurred by eight companies.

In 2019, the government paid various companies MVR 1.4 billion in compensation. The highest amount of compensation was paid to Noomadi Resorts and Residence that year which was MVR 862 million.

Other companies compensated in the year included:

  • Nexbiz Private Limited – MVR 274 million
  • WLT Private Limited – MVR 231 million
  • Noorul Islam International – MVR 30 million
  • Crown Company Limited – MVR 17 million
  • Bank of Maldives – MVR 15 million
  • Male’ High Private Limited – MVR 3 million
In this photo, the building that houses the Finance Ministry of the Maldives and Maldives Inland Revenue Authority is seen. The income for the state from shares owned in companies increased above expectations, according to the Finance Ministry on November 14, 2019. (Sun Photo/Fayaz Moosa)

The compensation payment for BML relates to money issued by the bank in loans to the public that were forgiven in light of the Great Tsunami in 2004.

In 2020, one company was compensated by the government; Centre Enterprises by MVR 5.8 million.

In 2021, two companies were compensated by the government, their total amounting to MVR 196 million. That is WLT Private Limited by MVR 181 million and Male’ High Private Limited by MVR 15 million.

No company received compensation from the government in 2022.

Although one company was compensated this year, the amount of the money and the name of the company has been classified due to a confidentiality agreement executed with the company which prevents the ministry from disclosing the information to a third party.