President Mohamed Muizzu has said the government is trying to take over Kaadedhdhoo airport, owned by business tycoon Qasim Ibrahim's Villa Air Pvt. Ltd., without offering any compensation from the state.
At a press conference at the President's Office on Monday (March 23), Muizzu said steps were being taken to avoid any financial burdens on the state.
He said the government was seeking legal advice from the Auditor General and the Attorney General to find a solution that benefits both the government and the Villa Company.
“We are now shaping this in such a way that we do not have to give anything from the people's treasury,” Muizzu said.
In August last year, the government decided to take over the airport after offering a USD 18 million (MVR 277.5 million) compensation.
Villa had demanded compensation of USD 21 million for the airport, but the Economic Council decided on USD 18 million to be paid in instalments or be deducted from taxes.
According to the President's Office letter, an audit report from Ernst & Young puts the value of the airport at USD 18.5 million. It also estimates that the airport development will cost USD 100 million.
The airport was handed over to Villa Air in 2013 for 50 years. However, the agreement was cancelled by the Civil Aviation Authority in 2017 amid political disputes between Qasim and then-President Abdulla Yameen.
In 2018, the Civil Court ruled that the government had terminated the agreement unlawfully. The decision was upheld by the High Court and the Supreme Court.
The airport was returned to Villa in 2022 during former President Ibrahim Mohamed Solih's administration.
The airport was handed over to Villa along with two lagoons. But the lagoons have remained undeveloped. With the cancellation of the airport agreement, the two lagoons will be handed back to the government.
