A Malaysian property developer has filed for arbitration against the Maldives over an alleged breach of contract, amounting to nearly US$30 million of arrears for the Finance Ministry project in Hulhumale'.

During the tenure of former President Abdulla Yameen, on September 10, 2015, WZR Property was invited to submit its proposal along with six other international companies to develop a 25-storey office complex by the Ministry of Finance and Treasury. WZR Property won the bid and was then awarded the contract on February 1, 2016, with the project amounting to nearly US$123 million. The contract agreement was subsequently signed between the Maldives government and WZR Property on March 1, 2016.

Local reports from Malaysia noted that WZR Property claims that it had not received a single sen of the payment despite the fact that it has already completed 20 per cent of the total work, and 60 per cent of the pilings for the structure.

“What happened is that when they changed to the new government some time last year ... they have been shifting the goal posts in terms of whether they wanted to continue with the project or not,” said Sazmi, who is also the Kelantan Parti Pribumi Bersatu Malaysia deputy chief.

“The agreement was signed with the previous government, the new government is kind of reluctant to continue. And our outstanding claim of US$29 million wasn’t being entertained.

Maldives Ambassador to Malaysia, Visam Ali revealed to MalayMail that the government “has been in consultation and negotiation with the company”.

She added that anything she says will further “hinder the process”.

A rep for the Ministry was unavailable for a comment on the matter during the time of press.