Government questions requirement of parliament approval before leasing resorts

Finance Ministry has said that they are currently seeking legal consultation on the requirement of parliament approval over the decision to lease the 14 islands scheduled to be developed as tourist resorts next year.

Speaking to Sun Online, Finance Minister Abdulla Jihad said that it is the prerogative of the government to lease tourist resorts and that the government having to ask approval from the parliament it is questionable. He said that they have asked the Attorney General for a legal opinion regarding this matter.

“While it is a power [to lease resorts] vested on us, I really don’t know why it was decided that way. Although we have that power, we will decide how to exercise it after we receive an opinion from the Attorney General,” said Jihad.

He said that it will cause the government some difficulty if they have to ask the parliament for approval and that as it is already a long process, the government will face delays in receiving some of its revenues.

The requirement of parliament approval for the development of the 14 resorts was included as amongst one of the eight budget recommendations in the budget which was approved by the parliament last Thursday. An amount of MVR 647.4 million is forecasted as revenue from the 14 resorts up for lease next year.

The fourteen islands researched and scheduled for lease by the Tourism Ministry are Raa Fasmandhu, Lhaviyani Uokolhu Finolhu, Vaavu Bodumohara, Meemu Dhihthundi, Laamu Hulhiyandhoo, Laamu Olhutholhu, Laamu Uvadhevhifushi, Gaafu Alif Bihureha, Gaafu Alif Bodubondeli, Gaafu Alif Falhuvehreha, Gaafu Alif Maamuta, Gaafu Alif Lhohi, Gaafu Dhaalu Kannigili, Gaafu Dhaalu Rahadhuva.

The total budget for next year is MVR 15.3 billion while the amount forecasted to be earned as revenue has been stated as MVR 12.9 billion.