The Economic Council has decided to give Villa Company 18 million dollars or provide tax relief in exchange for handing over Kaadedhdhoo Airport in Gaafu Dhaalu Atoll to the government. Although this airport was handed over to Villa for a 50-year term in 2013, the government of then-President Abdulla Yameen terminated the agreement and seized the property in 2017. However, the courts ruled that the airport should be returned to Villa. In accordance with this ruling, the airport was handed back to Villa in 2022. Due to numerous complaints about the low quality of airport services and lack of maintenance, the current government has expressed its desire to take over and develop the facility. In connection with this, although Villa Company requested 21 million dollars in compensation from the government, the Economic Council decided to give 18 million dollars.
The government has proposed to pay this money to Villa Company over 18 months or to adjust the tax money owed to the state by Villa Group companies over 18 months. The government has asked Villa Company to indicate which of these two options they prefer. Qasim Ibrahim said that the decision to give 18 million dollars was made considering the losses incurred by Villa Company and their investment in the property. He also said that they relinquished the airport because they couldn’t invest in it in the short term, and that they handed it over to the government knowing the benefits of turning it into an international airport.
Regarding Kaadedhdhoo Airport, former President Yameen said at last night’s meeting that the airport was handed over to the government after forgiving 30 million dollars in tax money, and he alleged that this involves corruption. However, Qasim said that Yameen was lying.
