The Attorney General’s Office issued a statement on Monday defending the MVR 15 million settlement with Male’ High Pvt. Ltd, the parent company of Mandhu College, claiming it was reasonable compensation for losses incurred as a result of the previous administration’s breach of the agreement.
An audit performed last year at the behest of the Education Ministry by the Auditor General’s Office concluded that Mandhu College was only entitled to a maximum of MVR 1.5 million in compensation. However, when Mandhu College filed a civil lawsuit against the Education Ministry, the state settled for MVR 15 million.
Attorney General’s Office stated that counsel offered by the Auditor General’s office in the matter violates ethical requirements. It also said that the audit by the Auditor General’s Office concludes that Mandhu College is not entitled to reimbursement for the rent they had to pay for the new building.
According to the Attorney General’s Office, the Education Ministry stated in a letter to the office in April that Mandhu College was entitled to MVR 15,012,500 in compensation, MVR 4,317,500 to procure the assets required to restart the college due to the unlawful termination of the agreement, and MVR 10,695,000 in rent incurred due to having to transfer to a different building.
The Auditor General’s Office had suggested two compensation options in its report. The first option was determined by valuing Mandhu College’s assets and inventory in the building at MVR 100,580 and the building investment at MVR 1.18 million, yielding a combined compensation of MVR 1.27 million.
In the second option, AG suggested compensation of MVR 1.58 million, with assets and inventory valued at MVR 166,599 and the investment in the building valued at MVR 1.41 million.
The report estimated the maximum financial compensation the company is entitled to be between MVR 1.27 million and MVR 1.58 million.