News Desk
A decade-long saga of shifted equity, corruption probes, and international arbitration culminates in the high-stakes transformation of Fushidhiggaru Lagoon into Ras Malé.
2011
November 29: Based on advice from the National Planning Council, the Cabinet decided to enter into a joint venture agreement for K. Fushidhiggaru Lagoon, securing a 50% state share with terms stipulating that all land rent would be paid directly to the State.
2013
January 18: A Joint Venture Agreement was signed between the Maldivian Government and Prime Capital Maldives Limited to establish a joint venture company to develop K. Fushidhiggaru Lagoon as a tourism zone.
Under the executed agreement, the Maldivian State’s equity share was reduced to 25%.
The agreement leased Fushidhiggaru Lagoon for 50 years to construct hotels and residential buildings across 27 islands.
The Tourism Minister at the time was Ahmed Adeeb, and the Finance Minister was Abdulla Jihad.
Concerns emerged regarding the deceptive 50-year lease of K. Fushidhiggaru Lagoon to a foreign entity.
The issue was first brought to light in 2013 by Umar Naseer, the Home Minister under President Abdulla Yameen’s administration.
2014
Development issues escalated as the Government of Maldives stalled in registering the Joint Venture Company. Prime Capital Maldives Limited subsequently filed a civil lawsuit against the Government.
The petition filed with the Civil Court requested an order directing the Government to register the Joint Venture Company under the terms signed with the Singaporean firm.
The Civil Court ordered the Government to register the Joint Venture Company to proceed with the development of Fushidhiggaru Lagoon.
2015
Late Ahmed Ibrahim Didi (Sandhaanu Didi), then Human Rights Ambassador, filed a complaint with the Anti-Corruption Commission (ACC) regarding the handover of Fushidhiggaru Lagoon for resort development during President Mohamed Waheed Hassan’s administration.
November: The ACC officially instructed the Ministry of Tourism not to lease Fushidhiggaru Lagoon to the Singaporean company.
2016
Addressing allegations that the lagoon lease facilitated corruption, the ACC initially reported that its investigation did not yield sufficient evidence to prove that deliberate efforts were made to secure an undue benefit for a specific party.
However, the ACC noted a key discrepancy: while the National Planning Council under President Mohamed Nasheed had decided in 2011 to retain a 50% state share, the agreement executed in 2013 under the subsequent administration reduced the Government’s share to 25%.
According to the ACC, this modification was attributed to a shift in policy following the 2012 change of government.
March 9: The ACC informed the Ministry of Tourism that under any joint venture, land acquisition costs must yield state revenue based on updated 2016 rates.
July 9: The Ministry of Tourism received formal notification regarding the ongoing lease agreement between the Maldivian Government and the Singaporean firm.
October 30: Under President Yameen’s government, the Ministry of Tourism announced the lease of 1,475 hectares of Fushidhiggaru Lagoon for USD 72.6 million (MVR 1.1 billion).
2018
August 1: Housing Minister Dr. Mohamed Muizzu announced that under President Yameen’s “Hiyaa Accomplished” housing policy, the Government intended to reclaim 230 hectares from Gulhifalhu and 800 hectares from Fushidhiggaru Lagoon (adjacent to Emboodhoo Lagoon).
Following a change in administration, an Asset Recovery Commission was established to investigate financial irregularities within the Ministry of Finance and the Maldives Marketing and Public Relations Corporation (MMPRC).
The Fushidhiggaru Lagoon lease was among the key cases selected for review.
2019
Joint investigations into multiple cases were officially launched by the Asset Recovery Commission and the ACC.
July 18: Prime Capital Maldives Private Limited notified the Maldivian Government that it had initiated arbitration proceedings in Singapore, alleging a breach of contract by the Ministry of Finance and Treasury regarding the lease and development of Fushidhiggaru Lagoon.
Prime Capital sought an order for specific performance compelling the Maldivian Government to fulfill the original agreement.
According to the Attorney General’s Office (AGO), Prime Capital also requested compensation for financial damages caused by the non-delivery of the lagoon, alongside full reimbursement of all arbitration legal fees.
The Singaporean entity requested that all arbitration proceedings remain strictly confidential.
The Attorney General’s Office issued a public statement confirming that jurisdiction and next steps rested with the Arbitration Tribunal.
2020
The Asset Recovery Commission concluded its investigation into the Fushidhiggaru Lagoon case and forwarded its findings to the Prosecutor General’s (PG) Office, which then filed criminal charges in court.
The prosecution stated that despite the Cabinet’s decision on November 22, 2011—acting on National Planning Council advice—to execute a 50% state-owned joint venture, former Finance Minister Abdulla Jihad acted in direct contravention of that Cabinet ruling.
The PG Office charged Jihad with executing a revised agreement with Prime Capital Maldives Limited that allocated only a 25% share to the State.
Prosecutors alleged that Jihad’s actions caused a direct land rent loss of MVR 750,713,604 to the State, along with MVR 611,720,000 (USD 411,720,000) in unrecovered corporate profits due to the reduced equity share, resulting in total public losses exceeding MVR 750.9 million.
In response to parallel civil matters, the AGO clarified the State’s legal position regarding the 2013 Joint Venture Agreement, asserting that state funds had been misappropriated through unlawful enrichment.
Citing new evidence gathered by the Asset Recovery Commission, the AGO sought leave to appeal previous lower-court decisions to the High Court of the Maldives.
Separately, the ACC investigated former Deputy Attorney General (and later Villingili MP) Ahmed Usham following an individual complaint related to his prior administrative role in the matter.
In court defense proceedings, Abdulla Jihad argued that former Tourism Minister Ahmed Adeeb was the primary architect of the contract and questioned why he was being prosecuted while Adeeb was not.
Jihad asserted that the agreement was drafted entirely by Adeeb, remarking that prosecuting the Finance Minister for signing it was equivalent to “holding a shopkeeper liable for murder simply because they sold the knife used in the crime.”
The court accepted testimony and corroborative evidence from Adeeb, ruling that documentary evidence would be prioritized over sole oral testimony.
2021
September 21: During court proceedings, Abdulla Jihad claimed that Attorney General Ibrahim Riffath submitted the criminal charges against him primarily to influence the Maldivian Government’s ongoing position in the Singapore arbitration proceedings.
The Government of Maldives maintained its stance in arbitration to defend state interests, overturn the agreement, and reclaim full control of the lagoon.
2023
Following his election, President Dr. Mohamed Muizzu officially launched land reclamation at Fushidhiggaru Lagoon, rebranding the mega-development project as Ras Malé.
2026
Ninety-nine percent (99%) of Ras Malé was leased to a UAE-based company.
