Ex-lawmaker’s fuel supplier ordered to pay US$1.2m to state company
Meridiam owed STO for fuel released on credit in 2010.
01 Aug 2019, 9:00 AM
The High Court on Thursday ordered Meridiam Services to pay MVR19 million (US$1.2 million) owed to the State Trading Organisation for fuel released on credit from March to December 2010 along with fines imposed for non-payment.
A three-judge panel at the appellate court overturned a civil court judgment in favour of Meridiam and ordered the company to settle the payment within six months. If the company fails to comply, STO was authorised to sell off a vessel mortgaged by Meridiam under the credit facility agreement.
At the time of the transaction, Meridiam’s majority stakeholder was MP Riyaz Rasheed, who later became the deputy leader of the formerly ruling Progressive Party of Maldives’ parliamentary group.
In June 2016, the civil court ruled that STO was unable to conclusively prove that the fuel had ever been released to Meridiam.
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