The Maldivian government has refuted claims made by Mohamed Alabbar, Chairman of Eagle Hills, that the Rasmalé deal was proposed to him by the Maldives.
In an official letter sent to Galolhu North MP Mohamed Ibrahim, the government said that the commercial terms for the Rasmalé deal, signed on September 21, were based on a proposal submitted by Eagle Hills.
"The commercial terms agreement was signed under the Private Sector Initiated Proposal (PSIP) framework, as stipulated in Section 10.22 (n) of the State Finance Regulations regarding projects initiated by private parties," the letter, signed by State Minister for Housing Ahmed Nazim Mohamed, read.
The regulation cited in the letter specifies that "in the event a proposal is submitted to the government, the Cabinet or a Cabinet committee may decide to proceed with the project."
The government dispatched this letter to MP Mohamed Ibrahim last Thursday. However, in an interview with local media six days after signing the commercial terms, Alabbar claimed that the government had approached him with the Rasmalé proposal.
"The truth is, the Maldives is a dream destination for everyone in the world. When I received news that they [the Maldives government] wanted to talk to us, I jumped at the chance. This is because there is only one Maldives in the entire world," Alabbar said on September 26.
Beyond the origin of the proposal, several discrepancies have emerged between the statements made by Eagle Hills and the government regarding the Rasmalé deal. These include contradictions over the total investment amount and the duration of the lease.
The government maintains that Rasmalé is being leased to Eagle Hills for 99 years. However, Eagle Hills has stated that if a property in Rasmalé is sold or gifted before the 99-year term expires, a new 99-year lease period would commence.
"Properties here will be leased for 99 years under Maldivian law. If the rights to these properties are sold or transferred through inheritance, a new 99-year lease term will begin. This ensures that the properties remain with the buyers for many generations," Eagle Hills stated.
Housing Minister Abdulla Muththalib, who signed the agreement on behalf of the government, had previously suggested that properties purchased in Rasmalé would be held indefinitely.
"The property purchased in Rasmalé belongs to the buyer. The land on which the property sits remains the property of the Maldivian state. If the property is sold or inherited upon the owner's death, it will be transferred subject to government approval and verification," he said.
However, the government now asserts that neither the land in Rasmalé nor any property purchased there will be available to anyone for a period exceeding 99 years.
Furthermore, the government claims that Eagle Hills will invest $20 billion in Rasmalé. In contrast, Eagle Hills initially stated its investment would be $12 billion. Alabbar later clarified that the $20 billion figure represents the estimated total value of the development upon completion.
