Popular Maldives accuses ACC of blocking Olhugiri for seven years and damaging its reputation

Popular Maldives, a company owned by the children of former Th. Vilufushi MP Riyaz Rasheed, has accused the Anti‑Corruption Commission (ACC) of deliberately obstructing the development of Th. Olhugiri and attempting to “damage the company’s goodwill” by linking it to the MMPRC corruption case.

The dispute centres on a USD 150,000 payment deposited into Popular Maldives’ account on 13 July 2015 through a cheque issued by SOF Pvt Ltd, the company at the centre of the MMPRC scandal. According to the ACC, the payment was part of the proceeds of crime used to pay the acquisition cost of Th. Olhugiri.

In a statement, the ACC said its investigation found that the lease agreement for Olhugiri required a resort to be developed within 36 months, and that failure to meet this obligation allowed the Ministry of Tourism to impose liquidated damages or cancel the agreement. The ACC said the requirements were not fulfilled and has now requested the Prosecutor General’s Office to charge the company under the Prevention of Money Laundering and Financing of Terrorism Act. The commission has also sought the recovery of the USD 150,000 and recommended that the Tourism Ministry withdraw the island from the company.

Popular Maldives strongly rejected the allegations, calling the ACC’s actions “false” and “unfair”. The company said that after the ACC halted MMPRC‑related island transactions, “almost all islands were released for development except Th. Olhugiri,” and that no attempt to develop the island over the past seven years had succeeded because the ACC repeatedly stated that a case was under investigation.

The company accused the ACC of discouraging investors and “holding the island to achieve something indirectly.” It said it had paid the required acquisition cost and therefore decided to file a case in court seeking relief. According to the company, the ACC submitted its case to the Prosecutor General’s Office only after the Civil Court ordered the commission to respond to the company’s lawsuit filed in December last year.

“If there was evidence, why did they wait seven years?” Popular Maldives said, adding that the timing of the ACC’s move “clearly shows an attempt to undermine the company’s reputation.”

The company also argued that the ACC does not have the legal authority to order the cancellation of agreements signed by the state, and said it was inappropriate for the commission to publicise such recommendations while a related case is ongoing in court.

The ACC, however, maintains that the funds used for the island’s acquisition were illicit and that the lease obligations were not met, warranting both prosecution and recovery of the money.

The case now awaits a decision from the Prosecutor General’s Office.