The Attorney General Uz Ahmed Usham has ruled that settlement agreements signed under Rule No. 42-G/2022, issued by the previous administration on November 28, 2022, are null and void.

These agreements, which were meant to resolve disputes arising from government-private sector contracts, have been deemed legally unenforceable. State agencies have been instructed to act on this decision.

The Attorney General’s assessment found that Rule No. 42-G/2022 lacked legal authority. This determination follows recommendations made by the President’s Office on November 21, 2023. President Dr Mohamed Muizzu subsequently referred the matter to the Advisory Committee established under Policy No. 2023/12. The committee reviewed and recommended the repeal of agreements signed under the disputed rule, forwarding the cases to the President’s Office for review.

The Public Accounts Committee also examined the agreements and determined they were invalid from their inception. It recommended annulling the agreements, recovering any changes made under the invalid rules, and taking legal action against individuals involved.

The Attorney General (AG)'s Office's investigation uncovered that the agreements were created systematically, without the consent of the Auditor General, and were designed to unjustly benefit certain individuals. Nine settlement agreements, signed during the previous presidential term, were specifically identified as being affected by these findings.

The nine entities involved in the invalid settlement agreements, as identified by the AG’s Office, are Leisure Beach Private Limited, UMET Construction Private Limited, Exotic Properties Private Limited, Dheebaja Investment Private Limited, Amsan Food and Beverage Private Limited, Clear Sands Private Limited, Blue Lagoon Investments Private Limited, Abdullah Ali, and JH Resorts Private Limited.

State agencies have been directed to disregard these agreements and to pursue the recovery of any undue benefits obtained through them.

Further details can be viewed  be via the official press release.