Malaysian Company Sues as HDC Fails to Pay

A Malaysian company in charge of developing a 25-story building in Hulhumale’ has decided to file a lawsuit against Housing Development Corporation (HDC) as HDC has failed to pay USD 22.8 million (MVR 352 million) owed to the company.

The previous year, the Asian International Arbitration Centre (AIAC) decided that Malaysia’s WZR Property must be paid USD 22.8 million. WZR Property was assigned to develop a Finance Ministry building in Hulhumale’.

Wan Nadzir Wan Mohamed, Executive Director of WZR, informed the New Strait Times that the company has attempted to acquire the funds through the Malaysian Foreign Ministry, the International Trade and Industry Ministry, and the Prime Minister’s Office.

The funds the AIAC has ordered to pay is compensation for all the work completed before the Maldivian government decided to halt the project, which was invoiced by the company in mid-May 2018. AIAC ordered the payment to be made within seven days.

Although the building was initially planned to be constructed in Male’, the government then decided to change the location to Phase 2, Hulhumale’.

The USD 123 million project was assigned to the Malaysian company on the condition that the company bears the cost of the project. The government was then to make split payments over 20 years after a three-year grace period.