Ministry of Tourism, Arts and Culture has transferred the ownership of islands Reethi Beach Resort (Baa Fonimagoodhoo), Gaafu Alif Mahaddoo and Thaa Funaddoo from Funaddoo Investments to two companies established by the Bank of Maldives (BML).
The transfer of the properties follows a Civil Court order for Funaddoo Investments to hand over the properties to BML as a means of seizing the mortgages. Funaddoo Investments failed to repay the loan, which was guaranteed by Henveyru-central MP Ali Azim and Alifushi MP Mohamed Nashiz. The case has since been appealed in High Court.
An official from the Tourism Ministry said today that the two islands were transferred to BML after discussing the matter with the owners of the properties. The official however did not state when the properties were transferred.
“If the loan is not repaid, the normal procedure is for collateral to be auctioned. But a resort has not been sold so far. By doing this, the bank can operate the resort and gain a profit,” the official said.
Reethi Beach Resort, one of the islands set as collateral, is currently operational. The other island Mahaddoo, is still under development. Fisheries Minister Ahmed Shafeeu also confirmed today that the head lease of Funaddoo island was transferred to BML sometime last week.
Fisheries Minister said that a Maldives Inland Revenue Authority (MIRA) has issued a no-objection letter for the transfer of the Funaddoo head lease.
“Before we transferred the ownership of the island, we ensured that there were no pending debts. We made sure, and then transferred the head lease,” Shafeeu said.
The loan was initially obtained by the Leader of Dhivehi Rayyithunge Party (DRP) Ahmed Thasmeen Ali after placing as collateral; all the buildings and investments of Thaa Funaddoo, “Madivaru 3” yacht owned by Kanbaali Faru Investments and all the properties of Reethi Beach Resort. Debt for the loan has now accumulated to MVR 206 million, including interest.