Attorney General Ahmed Usham has fired a stark warning to private contractors, threatening to terminate contracts of islands leased for various development projects for repeated contract violations.
During the 'Ahaa Forum', a platform created to directly respond to public queries, the Attorney General faced questions over the government’s recent decision to revoke the lease of Minaavaru and Udhdhoo Island in Noonu Atoll, citing breaches of the agreement by Sun Travels and Tours.
He explained that under the agreement, both islands were designated for agricultural activities and value-added processing, with the expectation that goods would be produced and marketed through value addition. Yet, the government, during multiple monitoring visits found no evidence of such production or processing, a clear violation of the lease terms, Usham said.
So the government had decided not to renew the lease of Udhdhoo after the 25 year lease period expired, while the Minaavaru lease was revoked as the developer had not been honouring the terms of the country, he explained.
In addition to these two islands, the Attorney General said there are several other islands and lagoons leased for development where no progress has been made in accordance with the agreement. After reviewing these contracts, the lease of such islands and lagoons where work is not underway will be revoked, he warned.
"The government is trying to seize these islands where developers are in breach of the contract. Such islands are not only allocated for agricultural purposes. There are islands and lagoons allocated for tourism purposes. There are many places where there has been little to no progress,” the Attorney General said.
The Minaavaru lease, granted for a 21-year term, took effect on 6 February 2010. Sun Travels, the lessee, is affiliated with Ahmed Siyam Mohamed, a businessman and Member of Parliament for Meedhoo.
Concerns over non-compliance prompted repeated warnings from the ministry. On 19 March, Sun Travels was given 30 days to address the violations and bring its operations in line with the stipulated terms, the ministry said. The deadline passed without corrective action. In response, the government moved to reclaim the island, formally notifying the company of the lease termination on 5 May.