President Dr Mohamed Muizzu has stated that the transfer of Gaafu Dhaalu Kaadedhdhoo Airport to Government control for redevelopment will proceed without compensation being paid by the State.

Speaking at a press briefing on Monday, President Dr Muizzu said the arrangement is being structured to protect public finances while ensuring that Villa Group, the current private operator of the airport, does not incur a financial loss.

The clarification comes after earlier remarks by Villa Group Chairman and Maamigili MP Qasim Ibrahim, who said the Government had proposed a settlement of USD 18 million, which the company had accepted.

President Dr Muizzu, however, said the process is now being reviewed and refined with input from the Auditor General and legal advice from the Attorney General’s Office. He noted that the aim is to finalise an agreement that delivers maximum benefit to the public without requiring State expenditure.

The President added that the approach reflects a shift from past practices, where large sums were paid to private parties in similar arrangements. He said such payments have now been halted, with the Government also reviewing previous agreements as part of efforts to strengthen fiscal responsibility.