An out-of-court settlement is being negotiated in a mortgage-related case involving Fuvahmulah Central MP Ali Fazad.
The case was filed by the SME Development Finance Corporation (SDFC) over the non-payment of a MVR 3.6 million loan issued to Kiyava Maldives Pvt Ltd, a company registered under Fazad’s wife, Aishath Anees. The loan was guaranteed by Fazad and his wife.
The SDFC had requested the court to declare that Ali Fazad, his wife, and the company breached the loan agreement and defaulted on the loan. They also sought a ruling that would hold Fazad and his wife responsible for the debt, along with permission to sell the mortgaged property to recover the owed funds.
Last week, the court dismissed the case, which had been filed before the parliamentary election. This dismissal was requested by Fazad, his wife, and the company as they entered discussions with SDFC regarding loan repayment. If the case had proceeded to a verdict, Fazad would lost his parliament seat, as non-payment of a proven debt is a disqualifying factor for Members of Parliament. In the past, MPs have lost their seats under similar circumstances.
Currently, Fazad is a member of the ruling Progressive National Congress (PNC), though he was previously affiliated with the opposition Maldivian Democratic Party (MDP).
