Arbitration case filed in Singapore over Fushidhiggaru lagoon

The 1,475-hectare lagoon was leased in January 2013 to a joint venture between the government and Prime Capital Maldives to reclaim 27 islands for development as a special tourist zone with hotels as well as residential and office buildings.

Citing the arbitration notice, the AG office said Prime Capital is seeking compensation for damages over the government’s failure to hand over the lagoon. Details could not be disclosed as the government was obliged to maintain secrecy of arbitration proceedings, the AG office noted.

The government has been under fire over large sums paid out as compensation for the cancellation of contracts under previous administrations with the anti-corruption watchdog probing payouts in several cases. The finance minister told parliament in early October that the state has paid MVR1 billion (US$64.8 million) as compensation since November 2018.