Prosecutor General (PG) Abbas Shareef has directed the Anti-Corruption Commission (ACC) to investigate the compensation payments made during former President Ibrahim Mohamed Solih's administration. The move follows allegations of irregularities in settlement agreements and the mismanagement of public funds.

According to a report from Parliament's Public Accounts Committee, nine settlement agreements signed between 2019 and 2023 involved compensation payments totalling MVR 1 billion. The report highlighted concerns that certain individuals in key state positions allegedly facilitated the transfer of public funds and assets to undeserving parties, violating constitutional obligations and state interests.

The Committee’s findings were submitted to the PG’s Office, which determined that the ACC is authorised to investigate these allegations. The PG’s Office formally requested the ACC on 17 December 2024 to conduct a thorough and expedited criminal investigation into the matter.

The report also recommended prosecuting former President Solih, Economic Minister Fayyaz Ismail, and former Minister at the President's Office Ali Siyam, accusing them of direct or indirect involvement in transferring public funds improperly.

Additionally, the report advised the Attorney General and relevant authorities to void any settlement agreements deemed unlawful and recover any compensation paid outside the Public Finance Act and associated regulations.

President Dr Mohamed Muizzu’s administration, shortly after taking office, dissolved the Settlement Committee established by the previous government. The committee was found to have operated without a proper legal framework, according to the Attorney General’s Office. Agreements signed under its policies have since been cancelled, with nine such agreements deemed to have provided undue financial benefits to specific parties.

The ACC’s investigation will focus on ensuring accountability and recovering public funds lost due to these settlements. Further updates are expected as the inquiry progresses.