Shamheed promises to repay debt amid concerns of losing parliamentary seat

Opposition MDP’s South Hulhumale’ MP Dr. Ahmed Shamheed has pledged to settle a debt in accordance with a Civil Court ruling concerning a loan guarantee he provided for Duplex Private Limited.

Failure to settle the approximately MVR 4.3 million owed to the Maldives Islamic Bank (MIB), as ordered by the court, would result in the legal forfeiture of his parliamentary seat.

The Civil Court issued its ruling on Wednesday in a case filed by MIB over the non-payment of a USD 500,000 facility. Although the lawsuit was filed against two affiliated companies and the individuals responsible for the facility, the court held the company and five guarantors, including Shamheed, liable for the debt.

In a statement issued following the verdict, Shamheed clarified that although he co-founded Duplex Private Limited with former associates, he had been distanced from the company's management for approximately seven years due to internal disagreements. He emphasized that the loan had been obtained for the personal benefit of certain shareholders and that he had provided the guarantee only because the facility could not have been secured without it.

The statement further noted that, after learning of the company's default, he repeatedly urged its management to settle the outstanding dues. However, as they failed to do so, he said he had been making payments in his personal capacity.

Shamheed also alleged that the company's management had remained negligent and failed to respond to the court proceedings after the case was filed. He noted that he had not been summoned to court before the conclusion of the trial and had only been informed of the final judgment by email.

Shamheed, who is also contesting for the MDP presidential ticket, said it was unacceptable to politicise matters of personal interest to defame him, particularly at a time when the company's current owners are supporting a political rival.

"Although this loan was not taken for my personal use, I assure the beloved constituents of my district that, by the grace of Almighty Allah, I will fully settle this debt, which has been legally assigned to me, in accordance with the court’s ruling," Shamheed's statement read.

This is not the first instance in the current 20th parliamentary assembly in which a lawmaker's seat has been jeopardized over an outstanding debt. Previously, Mohamed Sinan, ruling PNC’s North Hithadhoo, lost his seat after failing to settle a MVR 3.8 million loan taken from MIB alongside two other individuals.

In April, the Supreme Court ruled that Sinan had lost his seat after a private individual petitioned the court for a declaration that he no longer met the qualifications for membership. The court determined that there was no evidence that Sinan had been making regular payments as required by the Hithadhoo Court's judgment.