NSPA has terminated its agreement with Maldives Media House for a new office lease amid allegations of irregularities and reputational damages.

The National Social Protection Agency (NSPA) has announced the cancellation of its agreement to lease a building for its operations, citing concerns raised following public and media scrutiny.

In a press release, NSPA stated that it had been instructed to vacate the "Mookai Suites" building, its current operational headquarters, for renovation purposes. Subsequently, the Ministry of Finance initiated a tender process to find a replacement, awarding the lease of floors in a building owned by Maldives Media House (MMH) after adhering to established procurement guidelines.

However, according to the statement, false and defamatory information circulated by some media outlets regarding the transaction caused significant financial and reputational damage to MMH. In response, MMH proposed to terminate the agreement.

NSPA confirmed that after consultations with the Ministry of Finance, it has decided to proceed with the termination of the lease. The agency is currently completing the formalities for the agreement's cancellation in accordance with ministry directives.

Previously, NSPA clarified that when the tender was reopened, MMH was the only applicant and had followed due process through the National Tender Board. The lease was agreed upon for five years at a cost of MVR 34 million.

Last week, NSPA referred the matter to the Anti-Corruption Commission (ACC) for investigation. The agency's decision to cancel the agreement follows increasing scrutiny of the process and MMH’s request to terminate the deal.