The lease agreement for Raa Fuggiri was signed after confirming that former president Abdulla Yameen was assured the "commission" that he sought through the deal, his former vice president Ahmed Adeeb said on Monday.
Yameen is on trial along with businessman Ahmed 'Krik' Riza and the Sun Investment and Sun Construction and Engineering companies over the leasing of Raa Fuggiri island, which was part of the Maldives Marketing and Public Relations Corporation (MMPRC) corruption scandal that occurred during his administration.
Yameen was charged with money laundering and accepting a bribe. Riza was charged with money laundering and acting as an intermediary to bribery. Both Sun companies were charged with money laundering.
The criminal court heard witness testimony on Monday from former tourism minister and vice president Adeeb and former MMPRC managing director Abdulla Ziyath, both of whom have admitted in court to carrying out the MMPRC embezzlement scheme.
In response to questions from prosecutors, Adeeb said he had met a group of Indians who were senior officials of a Dubai company about leasing Fuggiri as instructed by Yameen.
Maafannu Medhu MP Ibrahim Rasheed 'Bonde' was present at the first meeting, Adeeb said. But Adeeb did not say in which capacity that Bonde joined the meeting. In response to questions from defence lawyers, Adeeb said Bonde was the company's representative in the Maldives.
The acquisition cost for the island agreed upon at the meeting was USD 2.5 million. But Krik Riza met with Ziyath on behalf of the company and requested a reduction to USD 400,000, Adeeb said, citing a message from Ziyath.
But since USD 400,000 was far too low as other Raa atoll islands had been leased for close to USD 5 million, Adeeb said he withheld a letter prepared by the MMPRC to lease the island at the lower cost.
In discussions with Yameen about the cost, Adeeb said Yameen told him that his commission could not be increased without reducing the cost.
"I advised president Yameen that it could be leased for USD 1.55 at the minimum. Otherwise a lot of problems would arise later. I was able to convince president Yameen," Adeeb said.
A meeting took place at the MMPRC with Adeeb, Ziyath, Krik Riza, then-Kendhikulhudhoo MP Ali Mauroof and one other person, Adeeb said, during which it was agreed that the island would be leased for USD 1.55 million.
Fuggiri was leased without a bidding process to the Dubai-based Classic Citi Island Holding. Fuggiri was leased to the company for USD 1.55 million.
Adeeb said the agreement signing was delayed twice on the instructions of Yameen. While the signing had been due to take place in the morning of the date that was decided, it could only be signed in the late afternoon, Adeeb said.
"We waited since 10 in the morning. But president Yameen informed that Krik Riza would provide confirmation of the commission payment, and that it should be signed after that. When Krik gave the confirmation and informed president Yameen, we were able to sign in the late afternoon that day," Adeeb said.
Adeeb said the investors did not send over documentations for the transaction, all of which was done through Krik Riza as instructed by Yameen.
"The money came through Krik Riza and president Yameen was to receive through the Sun companies. I even advised not to deposit in his account. But president Yameen said he has deposited like that many times in the past," Adeeb said.
Asked about his plea agreement with the prosecution, Adeeb said he agreed to provide information to the investigation and to cooperate with testifying at court.
Adeeb said he would not benefit or lose depending on the verdict in the trial. He denied any agreement with the state for a particular testimony.
Fuggiri case
According to the prosecution, Yameen used his influence as president to collect USD 1.1 million as a bribe through Riza and laundered the money through Sun Investment and Sun Construction and Engineering.
Fuggiri was leased through the MMPRC without a bidding process to the Dubai-based Classic Citi Island Holding. Fuggiri was leased to the company for USD 1.55 million. While bribery was suspected in the leasing of Fuggiri, the Pandora Papers revealed that influential Indian businessmen were behind the deal.
Records from the leaked Pandora Papers showed that Classic Citi was a partnership involving the family business of Indian property developer Avinash Bhosale and influential logistics businessman Amit Kumar Gandhi.
Yameen, who was awarded the presidential ticket of the Progressive Party of Maldives, is currently serving an 11-year prison sentence. He was convicted at the criminal court of accepting a USD 1.1 million as a bribe to lease Vaavu Aarah island through the MMPRC and then laundering the money. The High Court is hearing an appeal of the verdict.
