State Trading Organization (STO) has dropped the lawsuit against former Controller General of Immigration, Mohamed Shamaan Waheed – who is currently jailed pending the outcome of a corruption trial - seeking over MVR 97,000 in unpaid rent and damages for a café at the Harbor Food Court in Male’ City.
The dispute between STO and Shamaan stems from a lease agreement signed in October 2023 – during the presidential transitional period.
STO filed the lawsuit with the Civil Court against Shamaan in July, claiming total MVR 97,399; MVR 75,823 in outstanding rent as of June, and MVR 21,575 in liquidated damages.
STO asked the court to order Shamaan, who has been jailed since March, to make a lump sum payment to settle the debt.
But Shamaan and STO reached an out of court settlement after the lawsuit was filed, after which the state-owned company told the court they wish to withdraw the case.
On Wednesday, Civil Court Judge Ali Abdulla made the decision to dismiss the case as requested by STO.
Shamaan was dismissed from his role as the head of Maldives Immigration on March 20. In a statement shortly after the news of his dismissal broke, the police said they were investigating a case involving “several employees of Maldives Immigration who misused their authority to gain undue benefits from expatriate workers.”
Investigators raided Shamaan’s residence in Male’ the same night, and seized MVR 257,475, USD 10,000 and cash in other foreign currencies, as well as electronic devices.
He was arrested on March 21 after he arrived at the Sergeant Adam Haleem Criminal Investigation Building for questioning. He is currently jailed pending the outcome of his trial, and the Prosecutor General's Office (PGO) filed charges against him with the Criminal Court on May 25.
Shamaan lost his bid to have his detention overturned by the High Court in April, and the Supreme Court in June.
Shamaan has been pressed with serious felonies that would land him behind bars for a long time; an accomplice to theft by extortion – which carries a three-year prison sentence, misuse of authority to obtain a benefit – which carries a one-year prison sentence, and money laundering – a charge that carries a prison sentence of between five to 15 years.
These allegations are denied by Shamaan’s family, including his wife Hidhufa Faiz, who has described it as a frame job.
The family claims that Shamaan was framed by Home Minister Ali Ihusan because he has evidence of corruption by the latter, including an incriminating video. The family also said that Shamaan had alerted President Dr. Mohamed Muizzu to the alleged corruption via a letter back in December last year, including corruption in issuance of quotas and work permits for expatriates.
Earlier this week, the family started a petition urging authorities to expedite the trial.