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Maldives gov't freezes accounts of largest resort group

Xinhua, May 13, 2015 Adjust font size:

The Maldives tourism ministry has ordered tax authorities to freeze the accounts of companies with pending bills, including that of the opposition Jumhooree Party leader Gasim Ibrahim's Villa group, local media reported on Wednesday.

Ibrahim is frequently referred to as the Maldives richest man and heads the country's largest resort company.

The government is seeking 90.4 million U.S. dollars allegedly owed as unpaid, rent, fines and interest on several properties from Villa group.

The conglomerate, which operates businesses in shipping, import and export, retail, tourism, fishing, media, communications, transport, as well as education said the notice is unlawful and is contesting it at the civil court.

The notice for payment expired on April 18, but the Maldives Inland Revenue Authority (MIRA) did not freeze the company's accounts saying the move may negatively affect the Maldivian economy, according to local media report.

Deputy Tourism Minister Hussain Liraar told Minivan News: "We did not mention a specific business or company. But the ministry sent a letter to the tax authority asking to freeze the accounts that owe money to the state."

MIRA has declined to comment on the issue saying, "It's not our policy to give out information regarding specific tax payers."

Meanwhile, Tourism minister Ahmed Adeeb told local newspaper Haveeru that the government must recover any money owed to the state, "This is public money. We cannot let it slide for certain individuals."

According to Haveeru, the tourism ministry's order to freeze accounts came in response to a letter from MIRA, in which the tax authority said freezing Villa's accounts could have adverse impacts on the economy. In response, the tourism ministry ordered MIRA to freeze the accounts of all companies with pending bills.

Some 20 companies, including Villa Shipping and Trading Pvt Ltd, now face an accounts freeze.

Opposition parties have alleged the freeze is part of suppression by the government after Ibrahim left President Yameen' s party. Endi