Upper Limit on Compensation for Businesses to be Proposed in Guidelines

On 26 August 2019, a decree was submitted to the Peoples Majilis urging the Government to formulate a policy on managing financial obligations towards parties that the Government has entered into agreements with.

The decree, proposed by Thulhaadhoo Constituency Member Uza. Hisaan Hussain, refers to agreements entered into by the previous administration and other parties which were terminated by the state owing to various political, and baseless reasons.  These terminations have created financial burdens which both, Maldivian businesses, and the current administration must bear.

The decree proposes four main issues to be brought to the attention of the government; ensuring an upper limit for compensation is expressly stipulated in future agreements, and employees that may be held strictly liable for any financial burden to be borne by the state and can be held responsible, and sued to reclaim damages paid by the state; conduct a review of all agreements entered into under the previous administration; prepare a report on estimated damages payable by the state; and draft a law which explicitly indicates upper limit of compensation that can be paid by the state through cash and non-monetary assets.

Photo credits: David Stanley / flickr