Failure to settle MIB debt could cost Shamheed his seat

Hulhumale' South MP Ahmed Shamheed is facing the prospect of losing his parliamentary seat after the Civil Court ordered him and other defendants to repay more than USD 281,000 owed to Maldives Islamic Bank (MIB), an amount equivalent to approximately MVR 4.3 million.

According to a ruling issued by the Civil Court on Tuesday, the case was filed by MIB over the non-payment of a USD 500,000 financing facility issued by the bank. The lawsuit was filed against two companies and several individuals responsible for the facility, including Shamheed.

The court ordered the defendants to settle USD 281,474.28 within the stipulated period. The amount comprises an outstanding principal balance of USD 244,826.52 and a further USD 36,647.76 in charges.

The court also ruled that all defendants, including Shamheed, are jointly and severally liable for the debt, deeming it a proven debt owed to the bank.

The ruling raises questions over Shamheed's eligibility to remain in Parliament under Article 73(n)(1) of the Constitution, which states that a member loses parliamentary membership if they fail to settle a proven debt in accordance with a court order.

As such, if the debt remains unpaid beyond the deadline set by the court, Shamheed could face the loss of his parliamentary seat under the constitutional provision.

The ruling comes as Shamheed is campaigning after announcing his intention to contest the Maldivian Democratic Party (MDP)'s presidential primary.

A similar case unfolded earlier in the current 20th Parliament when former Hithadhoo North MP Mohamed Sinan lost his seat over an unpaid debt.

Sinan was found liable in connection with a loan of MVR 3.8 million obtained from Maldives Islamic Bank alongside other parties. The case also involved Ahmed Waheed and Mohamed Saleem of S. Hithadhoo.

In April, the Supreme Court ruled that Sinan had a proven debt and could not be considered to have repaid it in accordance with the court's judgment. The court subsequently determined that he no longer met the constitutional requirements to serve as a member of Parliament, resulting in the loss of his seat.

The ensuing by-election was won by former Addu City Mayor Abdulla Sodiq (Sobe), who contested on behalf of the MDP. He defeated Ahmed Saeed (Soda), the ruling PNC's candidate.