The Attorney General’s Office (AG Office) has stated the compensation to be paid by the state to Mandhu College is justified due to the unlawful termination of the contract by the Ministry of Education.
Last month, Civil Court of the Maldives ordered the state to pay USD 1 million in compensation to Mandhu College to cover the damages incurred due to the unlawful termination of the contract to lease the former MES building to the college. Mandhu College had been operating in the former MES building until 2015, when the government terminated the lease contract and forced the college to move out of the building.
The education ministry had stated the contract with Mandhu College was terminated after the college failed to operate an international school in the building as specified in the contract. Following a lawsuit by Male’ High Private Limited, which operates Mandhu College, it was determined that the contract was terminated unlawfully and that the compensation must be paid by the state to cover the damages incurred by Mandhu College due to the termination. The compensation amount of USD 1 million was agreed upon by all parties during the dispute resolution process carried out by the court.
In a press statement released in relation to the case, the AG Office stated the compensation is the direct result of contract violations by the Ministry of Education. Citing the documents presented as evidence by Male’ High Private Limited, AG Office said the state could not have rejected the strong evidence documents presented to the court. Therefore, the AG Office said the state reached a settlement with Male’ High Private Limited in order to prevent a lengthy trial that would have resulted in a larger compensation.
AG Office further stated the advice initially given by the Auditor General’s Office to pay a lower amount in compensation does not consider the procedures followed by court in awarding compensation to damages of contract violations. The AG Office stated the advice contradicts fundamental legal clauses such as the Freedom of Contract.