The Government has not waived millions of dollars in dues owed by Villa Air, contrary to claims made by former President Abdulla Yameen Abdul Gayyoom. Instead, Villa Company will receive USD 18 million in compensation for handing over Kaadedhoo Airport to the State.

The clarification was made in a post on X by Jumhooree Party leader and Maamigili MP Qasim Ibrahim, who released official documents detailing the agreement. According to the records, Villa had sought USD 21 million, but the Economic Council approved USD 18 million, to be paid over 18 months at USD 1 million per month.

MP Qasim has said that Villa had operated Kaadedhoo Airport at a heavy loss and agreed to release it recognising the long-term benefits of upgrading the facility into an international airport. He added that the valuation was based on a report by Ernst & Young, which assessed the airport’s worth at USD 18.5 million.

At a political rally earlier this week, Former President Yameen alleged that the Government had written off USD 30 million owed by Villa in exchange for taking back the airport. MP Qasim rejected the claim as false, stating the arrangement is strictly a compensation deal for Villa’s investment in the airport.