Minister of Finance Ibrahim Ameer has explained the administration has paid 65 million US dollars in reimbursements since assuming power in November last year.
Answering questions after been summoned to the parliament, Finance Minister Ameer said the approach in which various projects were conducted by the previous administration has resulted in significant reimbursements.
While many companies have arbitrated such cases at international arbitration centres, the current administration has had to settle the claimed amounts. The reimbursements include Nexbis Sdn Bhd headquartered in Malaysia, which was awarded an 18.1 million US dollar contract to establish a border control system in Maldives.
Meanwhile, World Link Travels (WLT), of which local business tycoon Qasim Ibrahim is a shareholder, had to be paid 5.6 million US dollars for the state's refusal to hand over islands to the company for resort development as per the agreement.
While the state has paid over USD 65 million in reimbursements, President Ibrahim Mohamed Solih announced in July that the state has to pay over USD 388 million over illegally terminated contracts by the previous administration. He also urged authorities to investigate and take measures against responsible individuals.