Certain policy decisions and contractual agreements made during the presidency of Mohamed Nasheed have resulted in profound financial repercussions for the Maldivian state. A primary example is the airport development and management project contracted to the GMR Group. Following the termination of this agreement, the state was mandated by a Singaporean arbitration tribunal to pay USD 271 million (approximately MVR 4.1 billion) in compensation. Additionally, the cancellation of housing project agreements with Noomadi Resorts and Residences led to an out-of-court settlement, necessitating a further payment of USD 55 million (MVR 848 million) from the state budget.
Even after his tenure, the state continues to incur significant expenditures related to the statutory benefits and security detail entitled to former presidents. In particular, the medical expenses following the 2021 assassination attempt, along with the high-level security provided to him both within the Maldives and abroad, have required substantial budgetary allocations. Consequently, the financial impact of President Nasheed’s political decisions, combined with the ongoing costs of his security, has placed a considerable burden on the national treasury.
