Maldives on Tuesday said its cabinet has recommended termination of a contract given to GMR Group for developing Male Airport, a project awarded to the Indian group during the previous regime of island nation.
The Maldives cabinet in a meeting on Tuesday decided to terminate the contract and a notice to this effect was issued to GMR Group, Maldivian President’s Press Secretary Masood Imad said in a statement.
The USD 500-million project was hanging in balance ever since the regime change in Maldives earlier this year. The GMR group had won the contract during the regime of former President Mohamed Nasheed.
Some coalition partners of the current regime headed by Mohamed Waheed had also held a rally against GMR on November 3.
The airport contract was awarded to GMR through a 10-month long global competitive bidding process run by the then Maldivian government headed by Mr. Nasheed.
Nearly eight months after the regime change in Maldives, some Indian companies present there, including GMR, are blaming political interference for creating “undue challenges” for them.
Keywords: GMR Group, Male airport, Maldives cabinet
There should be hardly any doubt left in Indian diplomatic circle about the intention of Maldivies Govt. India had played very softly when whole drama to overthrow democratically elected President Nasheed was done and an anti Indian Govt was allowed to come on power. Reason for recommendation of termination of contract has to be sought. If reason are not satisfactory and just because of its Indian origin , GMR lose this project, then Govt need to come forward and protect GMR interest. Govt should not allow Indian companies to suffer because of international politics.
GMR despite quality work should uphold high ethics by emulating TATAS and not Ramalinga Raju.
The GMR contract will be a lesson for giant corporates not to go into multi million dollar contract, while being aware of negative public sentiment. The agreement itself contains a clause whereby both the then Finance Minister, Maldives Airports Company Chairman and the GMR rep who signed the agreement acknowledge that none of them were aware of any proceedings against the signing of the agreement. This was while all the signatories were fully aware that the Parliament had passed a law for the second time, over riding the need for Presidential ratification, specifically to block this.
The response of Nasheed's Government was to fast forward and sign on the same day just hours after the law was passed.
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