Ameen: Dheebaja failed to provide services, led to termination of agreement

The agreement with Dheebaja Pvt Ltd was terminated after the company failed to provide the services agreed to in the agreement, the-then Transport Minister Ameen Ibrahim has stated.

The state entered into an agreement with Dheebaja to provide transportation to Northern provinces in the country before later terminating the agreement. This resulted in the state agreeing to pay MVR 174 million to the company as compensation for termination of the agreement after settlement talks.

Minister Ameen however, has stated that the agreement was terminated on the fault of the company today.

“(The agreement) was terminated after notices and warnings to provide the service agreed to were given to the company. It was done according to the laws and regulations, with the advice of the AG. This is clear from the High Court ruling.” said Ameen.

President’s Office spokesperson Ibrahim Hood informed “Sun” yesterday that the President has decided to pay MVR 174 million to the company on the recommendation of the Settlement Committee. The agreement signed in former President Nasheed’s administration saw the courts rule in favor of the company and ordering the state to pay MVR 348 million to the company as compensation.

This sum was later revised down to MVR 174 million after settlement talks between the state and Dheebaj, which requested the amount. Spokesperson Hood stated that the money had not yet been released to the company and that the Committee would advise the President as whether to release the money as a one-time payment or in installments.

The-then Transport Minister also questioned whether the citizens could be “paralyzed” from such an amount in a matter that had the interest of everyone on the basis that the procedures were not fulfilled.

The agreement to provide ferry services to the Northern atolls was signed on February 1, 2010, and was terminated on May 30, 2013, during the administration of President Mohamed Waheed.

Ameen also said that he hoped the President would review the settlement amount by considering the economic situation of the country.