Housing Minister Dr. Abdulla Mutthalib has alleged that Capital Marine and Civil Construction Company (CMCC) of Sri Lanka, which was contracted to reclaim Giravaru Falhu, is a company that doesn't proceed with projects but seeks compensation.

CMCC was awarded the Giravaru Falhu reclamation project by the previous government, as well as the Hulhumalé Phase 3 reclamation and this government's Ras Male' reclamation project. The government has since cancelled the agreement with CMCC for the Ras Male' reclamation.

Speaking at the "Ahaa" forum, a series of public Q&A sessions with ministers, Minister Muttalib discussed the contractor for the Giravaru Falhu project without specifically naming CMCC.

The Minister said that the government had paid CMCC USD 20 million in advance payments in two installments, and this government had also paid USD 15 million to continue the work. However, CMCC was unwilling to proceed with the work.

"In reality, our assessment shows that only USD 20 million worth of reclamation has been done. Even though they were given USD 20 million in advance, they weren't willing to work even after being given USD 15 million. The Giravaru agreement wasn't made with the government, but between the company and a government corporation called Maldives Fund Management Corporation," the Minister said.

Mutthalib said they are working with the Attorney General's office to terminate the agreement, but a complete solution hasn't been found yet. He added that they aim to terminate the agreement without causing losses to the government.

"Based on this contractor's history, it seems they always make contracts with the intention of termination. After termination, they go to arbitration to seek funds. They always get large compensations this way. So we need to think about terminating within the rules as best as possible. Otherwise, we might end up having to pay them millions of dollars in compensation," the Minister said.

The Minister noted that those who were previously allocated land from Giravaru Falhu have been given land in Gulhifalhu. He said the government won't wait for Giravaru Falhu to be reclaimed and is working on necessary changes to the land use plan. He also mentioned that if those allocated land from the already reclaimed 60 hectares agree, they will be handed over those plots.