News In Brief
February 12

MDP campaign, MACL debt and Cargil loan

News in brief from Thursday, February 12.

The opposition MDP launched its 'Heyvallaa Thayyaaru' campaign for April’s local council elections. Former President Solih and party leaders attended the rally at the artificial beach in Malé.

The Maldives Airports Company Ltd borrowed US$40 million from a consortium of Sri Lankan banks to refinance loans taken to develop the new passenger terminal at Velana International Airport, Sri Lankan media reported. "The funds were mobilised through a syndicated financing structure, with Hatton National Bank PLC serving as the Lead Bank and as well as the Facility Agent, alongside Nations Trust Bank PLC and Habib Bank Limited of Maldives as the other lead banks," according to the Daily FT. Concerns have grown over MACL's financial position after the state-owned company expanded into land reclamation, bringing in two of the world's largest dredgers for projects including Rasmalé, Hulhumalé Phase 3, and the Giraavaru lagoon.

Former finance minister Ibrahim Ameer accused the government of planning to channel borrowing from Cargill International Financial Services through the Bank of Maldives to disguise the true interest rate on refinancing a US$ 500 million sukuk due in April. BML would likely borrow from Cargill at around 14 percent and on-lend to the government at nine percent – the cap President Muizzu pledged in his state-of-the-nation address – making the lower rate "cosmetic" while concentrating sovereign risk in the banking system. The government has said US$ 150 million will be repaid from the Sovereign Development Fund and the remaining US$ 350 million refinanced, without disclosing terms.

Police arrested two men from Haa Dhaalu Kulhudhuffushi, 21 year-old Mohamed Ihusan and 44 year-old Ali Hassan, for allegedly grooming, exploiting, and sexually abusing a 15 year-old girl. Hassan was arrested on December 24, 2025, while Ihusan was arrested on January 3, 2026, following a joint operation by Family and Child Protection, Crime Intelligence, and atoll police.

Former Financial Intelligence Unit head Ismail Sajid filed a case with the Employment Tribunal on January 4, challenging his termination on December 29 following a sexual harassment investigation by the Maldives Monetary Authority's committee.

The national carrier Maldivian launched seaplane operations to Alif Alif Thoddoo.  

Attorney General Ahmed Usham told Dhauru the date for the constitutional amendment referendum will be decided after cabinet consultation, with the government planning to submit the request to the Elections Commission next week. The referendum, required to approve shortening parliament's term to align elections on the same date, may be held alongside the April 4 local council elections to minimise costs, although the cabinet must meet the Referendum Act's 45-day minimum requirement by submitting the resolution by February 18.

The infrastructure ministry signed an agreement with Toyo Construction Company Limited for Package 01 of the 'Project for Disaster Resilience Enhancement in Malé Island (Construction Phase)' under Japan's Economic and Social Development Programme.

The Environmental Regulatory Authority reported that most coral fragments planted at Kaafu Rasfari to restore damage from a 2021 ship grounding died during 2024's coral bleaching events, prompting a shift in focus to planting new coral fragments and sustainable long-term monitoring. The vessel's owner paid a MVR 100 million (US$6.5 million) fine and US$10 million for restoration work, which now includes establishing monitoring sites, installing temperature loggers, and implementing pilot programs using acoustic monitoring technology and artificial bio reef balls donated by China's Third Institute of Oceanography.

Former MDP chairperson Fayyaz Ismail alleged three WAMCO employees in Thinadhoo City were transferred to Kulhudhuffushi City and Ihavandhoo after being photographed with him, and were forced to sign false statements. He stated that participating in political activities and expressing opinions is a right for company employees, and called on citizens to vote against the government in the council elections due to violations of civil and political rights.

The Maldives hosted the first Maldives-EU Partnership Dialogue. Discussions covered democratic governance, human rights, climate action, maritime security, trade, and fisheries, with the EU committing EUR 4 million for mangrove conservation and encouraging Maldives to comply with ICCPR commitments. The Maldives requested inclusion in the Schengen visa exemption list, while both sides agreed to deepen cooperation and hold the next dialogue in Brussels in 2027.

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