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President Nasheed and his government seem to be hell-bent on saving Jabir’s ass in the Herethere (Handhu Fushi) fiasco. Following is a brief summary of how this fiasco is unfolding:
1. Jabir (pic) took hold of Herethere after a public bid and paid the rent (about usd 2.5 Million) for the first three months (June, July, and August 2008). He then requested Gayyoom’s government to defer the rent of the following three months for a future date). This request of Jabir wasn’t approved by the MTDC Board, so he paid the rent for the following three months (Sept, Oct, and Nov 2008).
2. Now the rent for the next three months (December 2008 and Jan, Feb 2009) is due and Jabir hasn’t paid this rent. Instead of paying this rent, Jabir has made an audacious and staggering request to the new government of President Nasheed. In a letter to the new government, Jabir has made three requests that could only be described as selfish, irresponsible and stupid!
3. The three requests Jabir has made to the new government and the MTDC Board are as follows:
(a) To forfeit (or make free) the rent of Herethere for one whole year. In monetary terms this means that Jabir is asking the MTDC Board to give him about usd 10 million for free!
(b) The second request from Jabir was to return the usd 10 million bank guarantee from Habib Bank which Jabir has deposited at the MTDC Board as a guarantee for one year’s rent of Herethere. The purpose of this bank guarantee was to ensure that the rights of the share holders of MTDC were upheld even if Jabir fails to pay the rent for one year. Now Jabir wants the government to return this bank guarantee, throwing the rights of the share holders into the garbage bin!
(c ) The third request was to reduce the rent of Herethere.4. The man won Herethere in a public bid. No one imposed this on him. Ananthara (an American owned company) had also bid for Herethere. But because Ananthara’s bid had a slightly lower Net Present Value (NPV) than Jabir’s bid, Jabir won the bid. The resort at present has occupancy of over 200 guests and is doing good business. Why should the government give one year’s rent free for Jabir? Why should the government return his bank guarantee? Why should the rent be lowered?
5. The total monetary value of Jabir’s three requests would be an estimated usd 30 million. The man has the audacity to ask the board of a public company and ask the government to grant him this kind of favour while overlooking the rights of hundreds of public shareholders!
6. But the most staggering thing is not Jabir’s mindboggling request but the fact that President Nasheed and his Tourism Minister (Sawaadh) seems to be willing to grant these three requests of Jabir. Following Jabir’s requests the Tourism Minister Sawad has tried to pressurize the CEO of MTDC and the MTDC Board to grant Jabir’s wishes but the Board has stood firm to protect the rights of the share holders. The obstacle that prevented Sawaadh from agreeing to Jabir’s requests was the Board of MTDC. The Board has given 30 days notice to Jabir to pay the outstanding rent for December 2008. Jan, Feb 2009. The deadline given for payment of the rent expires on 13th January. If Jabir doesn’t pay the rent by this date (within the next three days) the MTDC Board could revoke his bank guarantee of 10 million dollars and even nullify the contract.
7. In an apparent move to prevent such a scenario, the government and the Tourism Ministry has dismissed the four government-directors assigned to MTDC Board and assigned four new directors.
8. While all this is happening there are staffs at Herethere whose salaries haven’t been paid for the past 2 or 3 months and the rent for Herethere is also due (usd 2.5 Million).
Indeed, President Nasheed and his government seem to be hell-bent on saving Jabir’s ass in the Herethere (Handhu Fushi) fiasco. In an apparent move to please Attorney General Dhiyana (Jabir’s wife) and also to please Jabir (who is a parliament member), President Nasheed seems to be cuddling up to Jabir while disregarding the rights of the public share holders of MTDC.
The newly appointed directors to the Board could meet tomorrow (11th January) to try and grant Jabir’s wishes before the deadline of 13th January arrives. My advise to President Nasheed and the newly appointed Board of MTDC is that the rights of the Maldivian people should be held above the selfish desires of any misguided businessmen.
MTDC and Herethere and the people of Addu and the Maldivian people would be perhaps better off if Jabir’s contract for Herethere is nullified and a new party takes over its management. Not only does Jabir owe millions of dollars to MTDC and millions of Rufiya of salaries to his staff, he also owes nearly two and half million Rufiya to Island Aviation for services to Jabir's company (Yach Tours). We did not elect a new government to undertake questionable decisions to help shady business characters at a cost of million of dollars to the treasury. Listen to us Nasheed! Do you think that Jabir and Dhiyana are more important than we – the people who elected you?